Understanding the magnitude of rising Indian silver imports

We’ve reported previously that in the wake of new restrictions on gold imports Indians have bought more silver in the first 5 months of this year than all of last year.  To the end of May India imported 2,400 tonne.  In 2012 a total of 1,900 tonne was imported.  Analysts are predicting Indian imports will exceed 5,000t this year.  To put that into perspective that’s over 20% of total 2012 world production but importantly this increase is driven largely by investment demand which in 2012 was only about 7,000 tonne worldwide or about 25% with the rest consumed in industry, silverware or jewellery.