Industry Odisha Bureau, Sep 29: Record gold prices are pushing Indian buyers towards a more affordable precious metal. Silver is gaining ground in jewellery, gifting and investment. Yet its own price surge keeps demand fragile.
For many Indian families, even a small gold purchase now needs careful budgeting. That pressure is steering buyers towards a more affordable precious metal. Silver is moving beyond gifting into fashion and everyday wear. Some jewellers believe it could become the industry’s next big story.
A steep climb
Silver prices stood at ₹89,537 per kg in September 2024. They reached ₹1,41,918 a year later and crossed ₹2.32 lakh this September. That is a rise of roughly 160% in two years. The rally has drawn investors but created a contradiction. Silver remains cheaper than gold, yet it is no longer cheap.
More than coins and utensils
Silver demand once centred on coins, religious items, gifting and utensils. Lifestyle jewellery is now gaining weight alongside them. Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, reports increased interest in silver jewellery. How far that interest becomes sales remains unclear.
Joy Alukkas, Chairman and Managing Director of Joyalukkas Group, points to younger buyers. They want jewellery for regular wear, and silver fits naturally, he said. He sees silver complementing gold rather than competing with it.
Retailers see an opening
Senco Gold & Diamonds MD and CEO Suvankar Sen calls silver a potential “saving grace”. Senco’s silver volumes have risen about 25-30% on average. But Sen says buying is slower than last festive season. Sharp price swings have left many shoppers waiting.
The India Bullion & Jewellers Association (IBJA) expects Diwali silver buying to rise 17-18%. National Secretary Surendra Mehta cites affordability as a key driver.
Investment and industry
Investment is another growing thread. Interest in bars, coins and silver ETFs has strengthened over the past year. Solar panels and electronics add industrial support. The Silver Institute puts 2024 global industrial demand at a record 680.5 million ounces. It expects a sixth straight global deficit in 2026.
A Kotak Mutual Fund report names India the world’s largest refined-silver importer in 2025. Imports were estimated at about $9.2 billion, roughly 44% above 2024.
The price ceiling
Debajit Saha, Lead Metals Analyst at London Stock Exchange Group (LSEG), calls jewellery demand price-sensitive. He expects a festive lift but sees 2026 jewellery demand below last year’s.
Silver Institute data shows why. Global silver jewellery fabrication rose 3% to 208.7 million ounces in 2024, largely India-led. Then in 2025, Indian fabrication fell about 20% as rupee prices hit records.
Sharper swings
The gold-silver ratio shows how many silver ounces buy one ounce of gold. As it neared 100, Saha said, investors saw silver as undervalued. Momentum buying pushed prices towards $121 an ounce, driven by speculation, he added. When sentiment turned, silver corrected harder than gold.
Mangesh Chauhan, MD of Sky Gold & Diamonds, says silver’s prices swing more sharply. Gold, he noted, has a longer record of steady gains.
Paresh N. Bhagat, MD and Chairperson of Mangal Keshav Financial Services, urges caution. He resists calling silver the next gold. Physical volumes, he said, reveal more than sales values. Higher prices can lift revenues without deeper consumption.
A category of its own
Silver’s real opportunity lies beyond being gold’s cheaper stand-in. Fashion, gifting, investment and industry are widening its base. Yet affordability and volatility still set firm limits. Its big story will rest on steady physical demand, not record prices.
