FX.co ★ Covid boosted gold and silver demand in India

Gold and silver demand in India skyrocketed in the latter half of 2021.

Metals Focus announced this after visiting more than ten cities to assess the situation in the country.

They found out that physical metal investment and jewelry purchases surged, indicating robust demand for gold and silver.

Most of the growth came from holiday and wedding shoppings, Metals Focus said.

They added that the public's sentiment in gold increased because of the pandemic as earlier price increases helped many to overcome the crisis. The yellow metal offered a degree of security as it could easily be used as collateral for loans.

Another interesting development highlighted by Metals Focus is how jewelers across the country are aggressively replenishing inventories after a significant reduction last year.

Silver also advanced from a noticeable improvement in market fundamentals.

The holiday and bridal season greatly helped silver demand, even though it is forecast not to reach pre-pandemic levels.

In recent years, it increased because of purchases from millennials and working women.

Now, it recovered because social gatherings and weddings resumed in India.

Metals Focus expects gold and silver demand in India to continue improving, primarily driven by strong economic growth, relatively stable precious metals prices and pent-up demand.