India's Silver Imports Rebound as Licence Restrictions Eased

The silver market received some welcome news in August as India's imports rebounded to 15.5 million ounces, up from 1.5 million ounces in May. The recovery was attributed to the removal of policy restrictions that had previously hindered imports.

The Indian government had imposed a 15% import duty on silver and introduced new licence requirements in May, which led to a significant decline in imports. However, once the licences started flowing again, traders and banks were able to secure them, and imports began to recover.

The domestic price of silver in India is now above the cost of importing, creating an incentive for more metal to flow into the country. This trend is expected to continue over the next two to three months, with the festival buying season starting on October 11.