(Kitco News) A recent plunge in silver to 11-year lows has awoken strong Indian demand for the precious metal as low prices present a not-to-miss buying opportunity, according to INTL FCStone.
Earlier this week, silver prices tumbled below $12 an ounce with May silver futures last trading at $12.250, down 1.96% on the day. “Silver has continued to slither lower, hit by the dual adverse effects of lower gold and a debilitating economic outlook,” said INTL FCStone’s head of market analysis for EMEA and Asia regions Rhona O’Connell.
“The dramatic fall in silver to eleven-year lows (compare gold, at three-month lows) has launched a rush to buy silver in India, the world’s largest silver consumer.”
The data comes from the firm’s Dubai office, which is watching the physical silver demand in India. Last year’s rise in gold and silver prices in local currency has led to a slump in physical demand for gold and silver.
“There has been very little interest in either gold or silver for months in India, which means there is bound to be pent-up demand,” O’Connell told Kitco News on Wednesday.
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