Indian demand for gold and silver will begin around the 20th of August. The Hindu festival of ‘Rakhee’ marks the beginning of two and half months of festivals in India. Rakhee is a big gifting day also. On the emerging gifting trend in India, mobile phone and electronic gadgets are the most popular. Light weight silver jewelry, silver rakhee and other silver items are increasingly catching the fancy of the one and all in India. Gold is not a big gifting thing on rakhee. I expect physical silver demand in India to rise as jewelers prepare for higher sales on rakhee and follow up festivals such as Krishna Janasthami and Ganesh Chaturthi (mainly in Maharashtra and Gujarat). Even the follow up Hindu festivals are silver consuming festivals. Silver fundamental outlook is bullish for the next three month due to Indian demand and Asian demand.
My experience on analyzing from 2003 is that Indians buy gold in a panic only when there is media hype of a quick rise and a sustained rise.
This post was published at GoldSeek on 5 August 2016.
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