Page 14 - Bullion World Volume 5 Issue 05 May 2025

Bullion World | Volume 5 | Issue 05 | May 2025

Session Overview:
Mr Amar Singh opened the session by highlighting
silver's resilience, despite missing bullish targets.
Silver’s growing relevance in green technologies
like 5G, EVs, and solar were discussed. Singh

warned of geopolitical factors and market structure
changes reshaping bullion flows.

Mr Amar Singh
Asia Pacific & Middle East,
StoneX Group Inc.

• Q to Mr Ian Harris (ICBC Standard Bank): On market dislocations and COMEX pricing
• Mr Ian Harris described dislocation due to U.S. tariff fears, causing metal to shift from London to New York.
Non-uniform bar standards and delivery logistics caused lease rates to spike. While bullion tariffs were
ultimately exempted, the disruption exposed systemic weaknesses that impacted India’s supply chain.
• Q to Mr Neville Patel (HDFC Bank): On demand volatility and financing
• Mr Neville Patel said silver’s price sensitivity meant that by the time shipments cleared customs, demand
had often dropped. Banks and importers responded by reducing clip sizes and lease terMs UAE-origin silver
imports in smaller volumes helped manage risk.
• Q to Mr Chirag Thakkar (Amrapali Gujarat): On managing supplier-client tensions
• Mr Chirag Thakkar referred to the last two quarters as extremely difficult, with traders caught between
suppliers, banks, and clients. Volatility disrupted forecasts and deliveries. He called for frameworks to insulate
Indian trade from global shocks and emphasized consignment-based models.
• Q to Mr Rajesh Rokde (GJC): On retail demand at ₹100,000/kg
• Mr Rajesh Rokde noted that silver still appears affordable next to gold, and retains its role in gifting and
rituals. Silver is popular among young consumers and remains a “value buy” despite price rises.
• Q to Mr Surendra Mehta (IBJA): On low traction of the World Silver Council
• Mr Surendra Mehta cited lack of funding, weak industry coordination, and poor participation as reasons for
its struggles. He warned of low-purity silver jewellery (as low as 20%) eroding trust, urging a self-regulatory
framework.
• Q to Mr Vijay Murthy (Hindustan Zinc Ltd): On demand evolution and industrial use
• Mr Vijay Murthy emphasized growing industrial demand, particularly from green energy and electronics.
Hindustan Zinc aims to expand domestic silver production and promote branded silver products.
• Q to Mr Shivanshu Mehta (MCX): On silver market reforms
• Mr Shivanshu Mehta said MCX is addressing GST issues for EGRs and considering a similar silver initiative.
Plans are underway to develop a domestic price discovery platform and strengthen silver derivatives.

Moderator’s Closing Question:
What must your organization do to support long-term silver demand in India?
Mr Vijay Murthy: Expand production and introduce IGD (India Good Delivery) standards and domestic benchmarks.
Mr Gautam Choksi: Allow silver loans for industrial users and simplify access to silver in local London ounces.
Mr Chirag Thakkar: Increase consumer education to promote long-term holding and awareness.
Mr Rajesh Rokde: Promote SIPs and silver recycling via retail outlets.
Mr Surendra Mehta: Establish purity standards, implement self-hallmarking,
and launch Electronic Silver Receipts (ESRs).
Mr Ian Harris: Continue reliable imports; silver’s dual role helps India maintain demand.
Mr Neville Patel: Launch silver metal loans and expand hedging tools for consistent supply.

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