Silver Shines as Gold Prices Keep Middle-Class Buyers at Bay

As gold prices remain high in India, jewellers are shifting their focus to silver products, which could see a significant increase in sales during the upcoming festive season. The price of gold has made it inaccessible for many middle-class buyers, leading to a surge in demand for silver. Silver imports jumped by 127% year-on-year in August, reaching over $1 billion, following the government's decision to ease import curbs introduced in May.

Nagnesh Pachchigar, a third-generation diamond jeweller from Surat, now earns more from selling silver than diamonds. He expects 40% of his annual silver sales to come during the month-long festive season starting with Navratri on October 11. 'Silver is clearly the next gold,' he said.

According to Surendra Mehta, national secretary of the India Bullion and Jewellers Association, silver buying during this Diwali season is expected to rise by 17-18% from the corresponding period last year.