In the ongoing year, it is largely expected that the precious silver metal will see a uptick in its demand, fuelled by rural Indians spending cash given from the government given as a booster just ahead of the general assembly elections.

An analyst as cited in the Bloomberg report said that the demand or purchased shall inch higher to 6,590 tons as against 6442 tons bought in the previous year. Also he added, the recovery in demand for silver shall continue for some more years "because of economic growth, higher income, and relatively low silver prices and penetration of sterling silver".

Only last month government with the distribution of the first installment of Rs. 2000, which is part of the government's overall spending plan of Rs. 750 billion. "The government cash handouts to farmers will help silver demand much more than gold," as many recipients only have the purchasing power to buy the cheaper metal, said Sheth.

Also, the metal is stable in price for the last 2 years and at a price of Rs. 38,000 per kg is 80 times cheaper in comparison to gold, making it a more affordable gifting or investment option.

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