India Raises Tariffs on Gold and Silver: Is Silver a Better Investment Now?
Should you add silver instead of gold after the duty hike-triggered price rally? Experts say, ‘a tactical addition to...’
Mint
Image: Mint
India has increased import tariffs on gold and silver from 6% to 15% to control foreign exchange pressure, causing a nearly 6% surge in precious metal prices. Experts suggest that while silver is cheaper and has industrial demand, it is more volatile than gold, making it a tactical addition rather than a primary investment for small investors.
- 01India raised tariffs on gold and silver to 15% to curb imports and stabilize foreign reserves.
- 02Gold prices have surged to nearly ₹1.5 lakh to ₹1.6 lakh for 10 grams, while silver is around ₹2.9 lakh per kg.
- 03Experts recommend treating silver as a tactical addition due to its volatility and industrial demand.
- 04Investors should be cautious with silver due to its price fluctuations and potential global economic slowdown.
- 05India's gold and silver imports cost a record $84 billion in the last fiscal year, significantly impacting the current account deficit.
Advertisement
In-Article Ad
India, the second-largest gold consumer globally, has raised import tariffs on gold and silver from 6% to 15% to mitigate pressure on its foreign exchange reserves. This move has led to a nearly 6% increase in precious metal prices, with gold nearing ₹1.5 lakh to ₹1.6 lakh for 10 grams and silver around ₹2.9 lakh per kg. Despite silver's lower price, experts caution that its higher volatility makes it riskier than gold. Abhishek Kumar, a financial advisor, suggests that small investors should consider silver as a tactical addition rather than a primary investment. Vishal Dhawan, another expert, notes that while silver's prices have risen due to its safe haven status and industrial demand, potential global economic slowdowns could impact its demand. The Indian government is targeting gold and silver imports to address a current account deficit exacerbated by high import costs, which reached a record $84 billion in the last fiscal year.
Advertisement
In-Article Ad
The tariff hike is expected to increase precious metal prices, impacting small investors' purchasing decisions and potentially leading to a shift towards silver.
Advertisement
In-Article Ad
Reader Poll
Are you considering investing in silver instead of gold after the tariff hike?
Connecting to poll...
Read the original article
Visit the source for the complete story.