Silver is going to become expensive due to the new rule of the government
After gold, silver is the most purchased precious metal in India. But if you are planning to buy silver jewellery, coins or utensils in the coming days, then you may have to spend more time in your pocket. The government has made the rules for importing silver i.e. importing it from abroad quite strict. It has been taken out of the ‘free’ list and put in the ‘restricted’ list. That is, now to import silver from outside, importers will have to take prior approval from government officials. This step will have a direct impact on the supply of silver in the market, due to which its prices may go up rapidly.
Why did the government take this strict step?
It is natural that the question arises in the mind that why did the government suddenly have to take this decision. Actually, the global economy is under stress due to the ongoing war between Iran and America. This is having a direct impact on India’s foreign exchange reserves. When we buy any goods from outside, we have to pay for it in dollars. The government is trying to ensure that at least dollars go out of the country.
This is only to preserve foreign exchange reserves. restrictions Has been installed. As part of this effort to save foreign currency, a few days ago Prime Minister Narendra Modi had also appealed to the countrymen not to buy gold for a year. Before this, the government has also directly increased the custom duty on gold and silver from 6 percent to 15 percent.
Scope of new restrictions related to imports
Now it is important to understand what will be the impact of this new policy of the government. According to the new rules, now permission will have to be taken from the government to import silver bars of 99.9 percent purity from outside. Similarly, approval has also been made mandatory for semi-manufactured silver and silver coming in powder form.
India buys a huge amount of silver for its requirement from outside countries, because its domestic production here is very less. Concerns about increasing trade deficit amid dollar shortage have forced the government to take this step. Now silver is no longer just a common commodity, but is being seen as a sensitive asset having an impact on foreign exchange reserves.
Prices may skyrocket due to reduced supply
Market experts clearly believe that due to the new process being complicated for importers, there may be a shortage of silver in the domestic market. If the supply of physical silver in the market decreases, then its price in Indian markets (MCX) will rise much faster than in the international market. In such a situation, the premium may also increase in the domestic market. This difference is likely to become greater in times of stress.
Silver is not only used for making anklets or toe rings. It is used extensively in many big manufacturing industries ranging from solar panels, electronics, semiconductors. Due to fear of supply chain disruption, traders may start accumulating silver stocks on a large scale. Due to sudden increase in demand, there is every possibility of huge jump in prices, the ultimate burden of which will fall on the pocket of the common customer.
