INDIA SUFFERS SHARP SETBACK IN SILVER DURING 2000.

MUMBAI, Jan 2 Asia Pulse - Silver suffered a sharp setback on the bullion market during the year following a steep fall in international prices coupled with good inflow of the white metal into the country.

Gold showed wide fluctuations mainly in line with the Euro but the final closing prices were more or less pegged around the previous year's closing rates.

Both the precious metals, silver and gold, failed to attract much demand even during the two major festivals like Ganesh Chaturthi and Diwali and the usual buying enthusiasm during marriage season was also missing.

Traders attributed the poor demand to the general economic slowdown and poor harvesting as many states faced drought-like conditions due to lack of rainfalls. They said there were less auspicious dates to buy gold during the first nine months of the current year.

Silver: In the local market, ready silver (.999 fineness) opened strong at Rs 8280 per kilo and moved up to a high of Rs 8425 in February in line with firm gold prices. However, as the inflow of silver into the country increased, prices started nosediving and touched the year's lowest level of Rs 7790 in November. Thereafter, it moved in a range between Rs 7915 and Rs 7725 during the month of December and was quoted at Rs 7760 around Christmas, which showed a sharp fall of Rs 465 from the last year's close of Rs 8225.

Similarly, Raw silver (.916 fineness) started firm at Rs 8120 per kilo and rose to a high of Rs 8285. Thereafter, it declined sharply to the year's low of Rs 7685. Tenderable silver hovered between a high of Rs 8430 and a low of Rs 7795.

On December 24, raw silver was quoted at Rs 7650 and tenderable silver at Rs 7765, sharply lower than the previous years close of Rs 8100 and Rs 8230 respectively.