Silver Surges as Festive Season Sees Shift Towards Affordable Metal

With high gold prices deterring many middle-class Indian buyers, silver is gaining traction as a popular alternative in traditional jewellery. The price of gold has become unaffordable for some, leading jewellers and traders to shift their focus towards silver products.

Nagnesh Pachchigar, a third-generation diamond jeweller from Surat, now earns more from selling silver than diamonds. Silver accounts for 35% of his annual revenue, with buyers opting for the metal as affordable gifts during festivals.

The government's easing of silver import curbs in July has led to an increase in imports, jumping to over $1 billion in August - a 127% year-on-year rise, according to data from the commerce ministry. The response is expected to continue through the festival season, with jewellers estimating a 17-18% rise in silver buying compared to last year.

Surendra Mehta, national secretary of the India Bullion and Jewellers Association, believes that the shift towards silver is driven by consumer behaviour, with middle-class Indians opting for affordable gifts. The metal's popularity is expected to soar during the month-long festive season starting from Navratri on October 11.