Jewellers Experience Surge in Demand for Silver Bars and Coins as Gold Takes a Backseat
Silver is rapidly emerging as a sought-after investment, rivaling gold in popularity among consumers. The surge in silver prices has prompted a notable increase in demand for silver bars and coins, particularly in jewelry stores. Companies like Jaipur’s Amrapali Jewels are now catering to this trend by offering silver bars to customers. Experts suggest that this shift in consumer mindset could redefine silver’s role in the investment landscape over the next decade.
Growing Demand for Silver
The demand for silver has seen a remarkable increase, with a reported 50% year-on-year rise in purchases of silver bars and coins for the fiscal year 2026. Aditya Modak, co-founder of Gargi by P N Gadgil & Sons, attributes this surge partly to the soaring prices of gold, which have made it less accessible for many consumers. As a result, individuals are turning to silver as a viable alternative for investment. During the recent Diwali season, corporate clients ordered silver coins of lower grammage for gifting purposes, while individual consumers also embraced the opportunity to invest in silver. Modak noted that the past three months have witnessed significant buying activity in silver bars and bullion, driven by a fear of missing out (FOMO) among investors.
Market Dynamics and Price Trends
Last week, silver prices crossed the $90-per-ounce threshold in international markets, influenced by geopolitical tensions and increased demand from sectors such as electric vehicles, solar energy, and semiconductors. This global trend has had a direct impact on local markets, pushing silver prices in India above the Rs 3 lakh per kilogram mark. Ajith Singh Rajapoopaty, business head at Shaya by CaratLane, highlighted that spikes in silver prices typically lead to increased consumer purchases of bars and coins. During the Diwali period, sales of silver coins accounted for 30% of their overall business, a significant rise from the usual 5%.
Investment Perspectives on Silver
While silver is gaining traction as an investment option, experts caution that it may not provide the same stability as gold. Kishore Narne, executive director at Motilal Oswal Financial Services, acknowledged that silver has historically delivered higher returns than gold, albeit with greater associated risks. He indicated that while there is potential for silver prices to rise in the long term, short-term corrections could also occur. Analysts at HSBC predict a wide and volatile trading range for silver in 2026, suggesting that investors should remain vigilant as market conditions evolve.
The Future of Silver as an Investment
The growing interest in silver reflects a broader shift in consumer attitudes towards precious metals. As more individuals view silver as a legitimate investment avenue, the market dynamics are likely to continue evolving. Tarang Arora, CEO and creative director of Amrapali Jewels, believes that silver could become the new gold in the coming years, as consumers increasingly recognize its value. With the current trends in pricing and demand, silver is poised to play a significant role in the investment landscape, attracting both seasoned investors and newcomers alike.
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