GJ Town India

A robust rally seems to breach Rs100K mark by the end of 2024 Recently, Colin Shah, MD, Kama Jewelry shared his Outlook on Silver. He shared, Silver prices have outperformed gold this year, gaining about ~18% Year-Till-Date (YTD). In addition to being a precious metal, having ornamental value, silver is also considered as an industrial metal.    Silver is an imperative raw material in electric vehicles, solar panels, and 5G antennas, among other products that are expected to drive the global economy in the coming years, supported by a constant rise in demand.  Fuelled by the on-going geopolitical tensions, economic uncertainty, higher inflation, anticipation of rate cuts coupled with robust industrial demand, silver prices are increasingly gaining momentum from the past few days.    Going ahead, given its hybrid nature of being a precious and an industrial metal, a robust rally seems to be in the foresight, with a possibility to breach INR 1,00,000 mark by the e...

The digital boom in India,  to benefit online jewelry sales!   Looking ahead to 2021, we expect to see a healthy double-digit gain although that is set against 2020’s low level. The forecast upside for silver jewelry demand next year will likely be constrained by our expectation of yet higher silver prices. Furthermore, the anticipated economic recovery may be pushed further out as the pandemic could take longer to be meaningfully controlled in India. This in turn could, to some extent, weigh on consumer sentiment next year. The Longer Term Outlook: As mentioned earlier, silver jewelry sales are dominated by price-sensitive rural India and record high rupee prices are likely to weigh on demand in 2021. To offset the impact of this, jewelry fabricators and especially those in the largest segment that focuses on traditional jewelry (such as leg chains and toe rings) will likely choose to reduce purity or promote lighter pieces, thereby reducing silver demand in weight terms. ...