Silver Premiums in India Dip Amid Eased Demand: Market Adjusts Post-Festive Rush

In a notable shift, silver premiums in India have plummeted as demand cooled following the recent festive period, bullion dealers informed Reuters. This comes after premiums hit up to 10% over domestic prices amid heightened demand earlier this month.

Chirag Thakkar, CEO of Amrapali Group Gujarat, confirmed, "The rush to buy silver is over," reflecting the return to normal premium levels. During the festivals of Dhanteras and Diwali, silver purchasing surged, prompting investors to pay higher premiums.

Recent corrections in silver prices led to reduced buyer enthusiasm and a stabilization of premiums to 25 to 40 cents per ounce from more than $5. Despite the earlier boom, inflows into silver ETFs and imports have now moderated.