Over 182 Percent Volume in Silver Import in First Seven Months of Current FY 2082/83 Indicates Shift Away From Gold
Summary
Silver imports in Nepal surged by over 182 percent in the first seven months of fiscal year 2082/83, indicating a shift away from gold due to record high gold prices making silver more affordable for consumers and investors.
Key Points
- Silver import volume increased by 182.75 percent reaching 82 tonnes worth Rs 24.01 billion in the first seven months of FY 2082/83.
- Gold import volume modestly rose by 13.9 percent but its value nearly doubled due to record high international gold prices.
- Only 25.6 percent of Nepal's gold import quota was utilised despite customs duty cuts, as high prices deterred buyers.
- Increased silver demand is driven by gold's unaffordability, a 2 percent luxury tax on gold, and lower gold prices in India leading to cross-border purchases.
