India Plays Significant Role In The Global Silver Market

Given this, any fluctuation in the consumption and supply of silver in India will affect the position of silver in countries that supply to and from India. As such, it would affect the standing of silver in the global market.  

Furthermore, the rising export demand due to India’s position as a silver fabricator has resulted in a change in companies and exporters. These companies and exporters in India's silver market are now aiming to expand their reach to the east, with countries like Australia and China. 

Additionally, Indian artisans and jewellery designers are growing globally in the silver market due to the rising popularity of silver ornaments. The cultural significance of silver in India also has a hand in this, as silver jewellery is becoming more common on special occasions. 

Moreover, the rising gold prices have made the yellow metal unattainable for many, and these individuals then rely on silver due to its affordability. This ultimately affects the supply and demand and, therefore, the position of the silver market. 

All of this ultimately affects the position of India’s silver market and its impact on the global market. Moreover, the soaring growth of silver in the Indian market magnifies its impact due to the interdependence of countries on India for silver products. 

Common factors include: 

• The strength of the dollar 

• Inflation

• Shortage of silver

• High demand

• Trade policies

• Economic climate.

Another factor that affects the price you pay is the form in which you purchase the white metal. For example, jewellers add making charges for silver jewellery over and above the market price. Moreover, the making charges are subject to taxes, further increasing your cost. 

Additionally, jewellery made from silver in the Indian market has rhodium plating to increase its durability. This also gets added to the making charges of the silver jewellery. On the other hand, silver in coins, bars, etc., is not subject to these charges. 

As such, silver jewellery can cost more than coins and bullion. Given that silver in its entirety experienced a great appreciation in the last few years, more and more people prefer to invest in the silver market through these modes.