Precious metals refining company MMTC-PAMP is going to take a big step in the field of 'Silver Recycling' in view of the increasing demand for silver and the possible shortage of supply in the future. The company plans to start silver recycling as a pilot project at its existing stores in the next three months. This important information has been given by Samit Guha, Managing Director and CEO of the company.
Sameet Guha said that the decision to recycle silver has been taken because now its economics have become more favorable. He further explained that the worldwide demand for silver is increasing rapidly but there is no major expansion in mining production capacity. In such a situation, severe pressure can be created on the supply side in the future.
He said, if the demand for silver continues to grow in the same way, recycled silver will play a big role in meeting this shortage. Keeping this in mind, the company has also appealed to the government to promote 'silver recycling'. According to him, about 25,000 tonnes of gold and about 10 times more silver are available in Indian households.
MMTC-PAMP currently operates 20 stores for gold recycling, which can now be equipped for silver recycling as well. The company is planning to double the number of its stores in the next 05 years. Equipment will be upgraded and employees will be given special training in selected stores for the pilot project.
According to the company, this pilot project can start within 03 to 04 months in Delhi. This will require technical investment in recycling and assaying centers as well as upgrading of equipment. However, this investment will not be huge. Besides recycling, MMTC-PAMP also wants to expand its minting business. The company will increase its presence especially in South and East India and aims to increase the minting capacity from 24 lakh coins to 36 lakh coins.
The company is also focusing on digital business. MMTC-PAMP will also expand digital gold and silver business through its website and online platforms like Amazon and Flipkart along with increasing sales of coins and bars.
Regarding the prices, Sameet Guha said that in the last one year, the prices of silver and platinum have risen by 130 to 140 percent globally, while gold has seen an increase of about 75 percent. He added that, in the last 12 months, the return of silver has been almost double that of gold. Additionally, investors who missed out on the gold boom are now seeing silver as a great opportunity due to its low entry price.
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