Gold is very popular in India. The country ranks second after China in the world in terms of gold consumption. However, silver is also popular in India.
The pandemic had a negative impact on silver investment in India, but it increased significantly in 2022. Investment in physical silver last year reached its highest level since 2015, jumping to 79.4 million ounces.
Exchange trading in the white metal in India became widespread. This has boosted investment demand for silver. India's first exchange product was launched in September 2021.
The Silver Institute provided a report noting the particular importance of India in the global silver market.
The report said that new investment products are now available in India. It may have an impact on increasing investment in silver.
In addition, investors have redirected investments from gold to silver due to the Indian government's continued tight policy position on unaccounted money and increased attention to gold transactions.