At least we know the wise Indians will only go for the physical deal.
Regards - VHF
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Silver Is `Common Man's Gold' in India as Bullion Expensive, Trader Says
Madalene Pearson - Bloomberg News
January 10, 2011
Demand for silver in India, where imports of the metal surged more than sixfold in the first half of 2010, is increasing as investors seek an alternative to higher-priced gold, according to a trader.
“It is increasing day by day,” Ketan Shroff, managing director of Pushpak Bullions Pvt., said in a phone interview from Mumbai. Demand probably climbed at least 20 percent to 30 percent in the past six months, he said.
Silver futures in New York reached a three-decade high of $31.275 an ounce on Jan. 3, after rallying 84 percent in 2010. The metal is still 48 times cheaper than gold per ounce, data on the Bloomberg show. Gold for immediate delivery reached a record $1,431.25 an ounce on Dec. 7.
“People are accumulating silver since gold is getting unaffordable to the common man,” Shroff said in an interview on Jan. 7. Silver “has become the common man’s gold.”
Weddings and festivals, and higher gold prices will likely fuel demand for silver in the medium term, broker Karvy Comtrade Ltd. said in a report Nov. 2. Imports surged more than six times to $1.7 billion in the first-half of 2010, according to Karvy.
