India silver prices may hit record as demand recovers.

India silver prices may hit record as demand recovers(Reuters) - India silver futures may extend gains to hit a fresh record high this month on bullish trend overseas amid global economic uncertainty, coupled with reviving imports, analysts and traders said.

"The trend is bullish, and one should wait for dips and pick buys," said Arun Kumar Ubbara, an analyst with Way 2 Wealth Securities.

Buying could be done at 29,200 rupees, targeting 30,340/30,800 rupees, maintaining a stop of below 28,340 rupees, said Ubbara. Traders said reviving demand for the white metal on hopes of a normal monsoon could also help prices.

The India Meteorological Department says it expects total rainfall to be normal in the June-September season, which is vital for key kharif crops, a source of livelihood to rural India.

Precious metals form a large part of savings in rural areas, where more than 60 percent of the population has limited access to banking facilities.

Silver imports into India, the world's largest buyer of bullion, may recover this year from 1,000 tonnes a year earlier, traders said. "We haven't imported a single tonne in June, but if prices come down to 27,500 rupees we may see some buying," said Suresh Hundia, president of Bombay Bullion Association, a trade body.

But consumption will still be down from 2,500-3,000 tonnes recorded a few years ago.

Source : In.Reuters