India government attempted to slow down gold imports by implementing sharp tax increases. Silver – became the next target for investors. Silver imports increased drastically as there are no such import tariffs applied to silver.
The latest news from China has given silver yet another boost. Silver demand is both from the industrial and the precious metals investment sectors and China currently ranks as the world’s second largest silver consumer after the USA. China currently is the 3rd largest silver producer in the world. China is closely following Peru (world no.2 silver miner). If Chinese industrial growth is indeed beginning to recover, and with the better economic data coming out of the U.S. then silver’s industrial usage may be entering a good growth phase.
Chinese silver production and consumption have both been rising at an annual double digit percentage rate. There were fears that a Chinese slowdown would cut this rate of increase, so the news that the latest Chinese data was reporting stronger industrial growth, imports and investment gave a big boost to metal prices, with the volatile silver price perhaps moving most of all.
In last week article, I pointed that U.S. Mint sales for American Silver Eagle has been at record high level. This scenario suggests that investors’ interest in both East and West are going strong.
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