Silver's Star Moment: Indians Shifting Attention from Gold

Indians are shifting their attention towards silver as gold prices have become unaffordable for many. In just two years, silver has seen a surge of 160% in price, from ₹89,537 per kg in September 2024 to ₹2.32 lakh per kg this September. This has led to increased interest in silver jewellery and coins, with some industry experts predicting that silver buying during the Diwali season will rise by 17-18%.

Silver demand in India comes from various sources, including jewellery, coins, bars, and industrial applications such as solar panels and electronics. In the past year, investment demand has surpassed traditional consumption, driven by growing interest in silver ETFs. Joy Alukkas, Chairman & Managing Director of Joyalukkas Group, believes that silver can be a 'saving grace' for the jewellery sector, giving consumers more room to experiment with designs.

However, experts also warn that the market is price-sensitive and may not sustain momentum at high price levels. Debajit Saha, Lead Metals Analyst at the London Stock Exchange Group (LSEG), expects some improvement in the coming months due to the festive season, but predicts that silver jewellery demand will remain below last year's level.