Rising Gold Prices Drive Middle-Class Indian Buyers Towards Silver Investments
This festive season, many Indians are shifting their focus from gold to silver due to persistently high gold prices. Despite a recent decline, gold remains prohibitively expensive for many middle-class buyers. As a result, silver is gaining traction, with jewellers and traders expanding their offerings to attract consumers and investors alike.
Betting on Silver Instead of Gold
Jewellers are diversifying their silver products, which now include ornaments, idols, and furniture, to appeal to a broader audience. The festive season, starting with Navratri on October 11, is expected to see a notable increase in silver purchases. Industry experts predict that silver will account for a larger share of jewellery sales during this period.
Affordability is a key factor driving this trend. With silver priced at approximately Rs 2.3 lakh per kg, it presents a more accessible option compared to gold, which costs around Rs 1.5 lakh for 10 grams of 24-karat. Some affluent consumers are also viewing silver as an investment, anticipating price increases. One jeweller noted that silver now generates 25-30% of total revenue, up from 10% two years ago.
Nagnesh Pachchigar, a jeweller from Surat, reported that silver contributes up to 35% of his annual revenue. He expects 40% of his silver sales to occur during the month-long festive season. Surendra Mehta, national secretary of the India Bullion and Jewellers Association, estimates a 17-18% increase in silver buying this Diwali compared to last year. The government’s recent relaxation of silver import restrictions has further facilitated this growth, with imports surpassing $1 billion in August.
Gold Hallmarking Rates Rise
In a related development, the cost of gold hallmarking has increased, raising concerns about potential counterfeit stamps. The higher fees may encourage some jewellers to use forged hallmarking marks to avoid additional expenses. This issue is particularly pressing in smaller cities, where consumer awareness is lower.
Although consumers ultimately pay the hallmarking charge, many are unaware that they can verify the Hallmark Unique Identification (HUID) number through the Bureau of Indian Standards’ mobile app. The Gem and Jewellery Council has approached the consumer affairs minister and the Bureau of Indian Standards, requesting a rollback of the hallmarking fee from Rs 75 to Rs 45 per article. The hallmarking charge for silver jewellery remains unchanged at Rs 35 per article. The new fees were announced under the BIS (Hallmarking) Amendment Regulations, 2026, on September 14, 2026.
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