In the last five years, about 33 thousand tonnes of silver has been consumed in the country.
Silver is making new records. first time on mondayThe price of silver on Multi Commodity Exchange (MCX) crossed the level of Rs 3 lakh per kg. hisPrices are skyrocketing and this is beyond the understanding of the common man. They are often seen and heard asking the question that when the trend of silver jewelery is relatively low then why is the price rising so much? Let us know why silver is making new records every day? What is the real reason behind this? Where is silver being used today? Why did demand suddenly increase? And where are the sources of silver in India?
In the last five years, about 33 thousand tonnes of silver has been consumed in the country. This includes jewellery, coins and industrial supplies. As industrial demand is increasing, investors are also getting attracted towards silver. In such a situation, there is a high possibility that silver prices may rise further.
Where is silver being used?
Silver is now not just jewellery, but has become the backbone of modern technology. It is being used in many sectors.
- Electronics Industry: Smartphone, Laptop, TV, Camera, Microchip, Printed Circuit Board etc. Almost every electronic item requires silver as a nano coating or conductor.
- Solar Panel: Silver paste is used in photovoltaic cells, which increases the efficiency of converting sunlight into electricity.
- Electric Vehicles and Automobiles: There is huge consumption of silver in wiring, sensors, battery charging systems, autonomous driving chips etc.
- Medical Sector: Silver has anti-bacterial properties. Therefore, it is being used in medical equipment, wound dressing, water purifying filters, coating of hospital equipment, photography and X-ray films. This has decreased in the digital age, but some sectors still use silver-based films.
- Jewelery and Silverware: In India, it is still used in silver coins, anklets, utensils and religious items during festivals and omens.
India is one of the largest silver consumer countries in the world.
Why did the demand for silver suddenly increase?
These are the reasons behind the unexpected surge in demand behind rising prices.
- Green Energy Projects:Solar setups are being installed on a large scale across the world.
- EV and technology boom: EV sales are expected to increase manifold by 2025-2030.
- Reduction in Supply: Decrease in mining production created shortage in the market.
- Investment: Due to inflation and economic instability, silver became popular as a safe investment.
- government policies:Green energy and indigenous manufacturing are being promoted in many countries including India.
Where are the major sources of silver in India?
India is one of the largest silver consumer countries in the world, but its production is limited. In India, silver is mainly obtained as a by-product of zinc, lead and copper mining, that is, silver is not extracted separately, but is extracted along with other metals. Hindustan Zinc Limited (HZL) has mines in Rajasthan. Among these, silver, zinc and lead are released as by-products during mining. Limited quantity of production is also done in Jamshedpur and surrounding mining belt in Jharkhand. Silver is also obtained during gold and copper mining in Karnataka and Andhra Pradesh. Sporadic silver production also takes place in other parts of the country.
From which countries does India importSilver?
India produces silver, but due to high domestic consumption, it is also imported from many countries. India imports silver on a large scale from countries like Mexico, Peru, Russia, China. Domestic demand remains high due to industry, jewellery, photovoltaics and investment. Some refined silver products are exported in limited quantities, but overall India is a big consumer of silver, not an exporter.
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