1、Market Trend ReportTrends in Indian Investment DemandJanuary,2023Conducted By:Metals FocusIndian Silver Investment2January 2023Contents1.Introduction 2.Physical Investment3.Exchange-Traded Products4.Digital Silver5.Futures6.Prospects for Silver on the IIBX345789Indian Silver Investment3January 20231

2、.IntroductionSilver and gold are both widely recognized as savings and investment assets in India,a reflection(historically)of the low penetration of banking and other financial products.Even after the economic liberalization in 1991,as Indias economic growth has markedly improved,and with it dispos

3、able incomes,these characteristics have not changed materially,especially across rural India and semi-urban centers.Other important drivers of precious metals investment have been the liquidity they provide(as collateral to secure finance)and as a means to store unaccounted wealth.In this context,hi

4、storically the low penetration of banking products in India has meant that borrowers have often relied on informal funding channels.In the unorganized and informal segments of the market,lenders offer loans backed by collateral,a role that precious metals have often satisfied.Furthermore,India has r

5、elatively high levels of cash circulating in the economy.As such,it is not difficult to convert large amounts of money into precious metals to circumvent taxes,which can then be conveniently stored.The above-mentioned factors are common for both gold and silver.That said,since 2014,there have been s

6、ome notable policy and regulatory changes which have structurally altered investment in precious metals,both in terms of their role as a savings and as an investable asset.In this regard,the governments push towards providing banking services to the entire population,the crackdown on both tax evasio