By Invitation
SILVER IS SHINING
Surge in demand across jewellery & artefacts, the industrial & fabricating sectors – By Chirag Thakkar CEO Amrapali Gujarat (Amrapali Industries Ltd)
Chirag Thakkar is the visionary CEO at Amrapali Gujarat , Ahmedabad. Recognized for his leadership, he has been awarded the best bullion dealer in silver pan-India more than ten times in a row by IIGC, and several times by IIBS.
In 2021 also made a revolutionary step by introducing DIGIGOLD.com -digital buying platform for gold and silver , with the option buy as low as ₹1 embedded with physical door delivery of gold bars and coins.
Volatility and Shifting Focus
Silver, known for its high volatility, has seen a significant shift in focus towards India. The country recorded an unprecedented import of over 9000 tons of silver two years ago. This surge is primarily attributed to the industrial and fabricating sectors, which have experienced double-digit year-on-year growth and continue to expand at a rapid pace. India is also on the path to becoming a global leader in solar energy generation, further boosting the demand for silver.
Government Policies and Manufacturing
Stable and promising government policies in India are set to enhance the manufacturing sector, leading to increased use of silver. This is expected to sustain the high demand for silver as a commodity, supporting various industrial applications and contributing to economic growth.
Impact of India-UAE CEPA on Silver Imports
Custom Duty Arbitrage
The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE has introduced a significant arbitrage in silver import duties. Under this agreement, a 6-7% lower duty is levied on silver imported from Dubai. This has created a disparity in the physical silver market, affecting small and medium-sized manufacturers who struggle to access silver at these lower prices.
Market Disruption
The duty disparity has led to large quantities of London Bullion Market Association (LBMA) certified silver being stored in India’s local exchanges, such as the Multi Commodity Exchange (MCX). The vaults in Ahmedabad, for instance, have reached full capacity. Consequently, global bank suppliers are shipping LBMA-certified silver back to London from India’s Special Economic Zone (SEZ) vaults in Chennai and Gandhinagar.
Silver Jewellery Exports
Silver jewellery and artefacts have seen stable growth in exports. The local market for silver jewellery in India is also picking up pace, indicating a healthy demand and a vibrant market.
Silver Mining
Supply Trends
Global silver mining supply has slightly decreased year-on-year. This reduction in supply, combined with increasing demand, is exerting upward pressure on silver prices.
Price Outlook: Current Trends and Projections
Silver prices have recently soared to all-time highs in Indian Rupees (INR). There is anticipation that prices may continue to rise, potentially reaching six-figure levels and sustaining above those thresholds. The global demand for silver in the manufacturing and industrial sector is a key driver of this price increase.
By Invitation
Natural diamonds have to rediscover their relevance to a jaded consumer that wants to separate themselves from the past
By Edahn Golan
Martyn Charles Marriott, drawing on 45 years in the diamond industry, in a blog titled Co-Operation between African Diamond Producers on the IDMA website, advocates for a new era of co-operation among African diamond producers, seeing the current debate around De Beers’ future as an opportunity. He proposes forming a diamond “OPEC,” reminiscent of the stability once maintained by the Oppenheimers’ Central Selling Organization (CSO). The CSO, through a stockpile, quota system, and vast generic advertising historically benefited the entire industry. Marriott believes a collective entity involving nations like Botswana and Angola would be more stable and bankable than a single-country approach.
JewelBuzz spoke to noted diamond industry analyst Edahn Golanon his take on Marriott’s view and how practical and feasible this “ nostalgic yearning” was. This is what Edahn Golan has to say:
I don’t think that resurrecting a monopoly is possible, much less legal. I understand the nostalgic yearning for the ‘good old days,’ but that is not where the solution will be found. On the contrary, the industry at large – and De Beers in particular – needs to evolve and adapt. They both need to reinvent themselves.
Natural diamonds have to rediscover their relevance to a jaded consumer that wants to separate themselves from the past, a consumer market that wants luxury that doesn’t shout bling. Most importantly, diamonds should stand for values that are relevant to today’s cultural norms.
That is where diamonds will find their future, not by reimposing tight control on the pipeline.
I also read Chaim Even-Zohar’s column. I worked with him for many years and hold deep respect for both him and his approach to the industry.
That said, I believe Botswana does not need to go all in on owning De Beers.The country already receives more than 75% of the diamond revenue generated locally, along with a portion of the revenue De Beers earns from its operations in Namibia, Canada, and South Africa. Expanding that share or seeking a larger cut from other countries would only deepen Botswana’s dependency on diamonds.
Instead, Botswana should diversify its income sources and invest more internally, a process it should have initiated more than a decade ago.
For example, if it channels investment into its international airport and succeeds in expanding tourism, the country would generate greater income, reduce its reliance on luxury sales, improve foreign currency inflows, and, in the process, expose more of the world to its diamonds.
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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.