Silver imports resume after India eases licensing rules

Livemint reports that silver shipments into India are picking up after a new licensing regime disrupted imports in May. Several traders and banks have secured permits, bringing in about 89.81 tons in August through the India International Bullion Exchange in GIFT City, after six months of no imports.

The government imposed licensing requirements to preserve foreign-exchange reserves, and shipments had plunged. Now, each shipment must include a formal certificate of origin from a government body, a new requirement that is causing delays at customs. "Many traders are still not able to clear the metal at customs due to the paperwork," said Harshal Barot of Metals Focus.

Higher local prices for silver, among the world's largest consumers of the metal, create incentives for traders. The supply improvement has narrowed premiums, though the 30-day average remains at $4 an ounce. Jewelers may start restocking ahead of the festival and wedding season, but "the market is running on existing inventory and trickle-through supply rather than genuinely improved flows," cautioned Renisha Chainani of Augmont Enterprise.