Silver Prices Soar as Indians Opt for Affordable White Metal Over Gold Amidst High Yellow Metal Rates

As the festive season approaches, a surge in silver demand is anticipated, with prices hovering around Rs 2.3 lakh per kilogram. This represents a significant discount compared to gold, rendering silver an increasingly appealing choice for consumers.

Industry insiders predict a notable increase in silver purchases, with some specialists forecasting a 17-18% rise during the Diwali season.

According to the Jewellers Association, the surge in silver demand is attributed to its affordability for middle-class buyers. Silver provides a much cheaper starting point than gold, with prices of the yellow metal remaining prohibitively high for several people.

The Association also notes that silver is emerging as a possible standout this festive season, which begins with Navratri on October 11.

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Several jewellers and industry experts have expressed their confidence in the growing appeal of silver. Nagnesh Pachchigar, a third-generation diamond jeweller based in Surat, has seen a significant increase in sales of silver articles, with the metal now generating 25-30% of his yearly revenue.

He attributes this to the increasing preference of middle-class households for silver articles as gifts due to their affordability.

The government's relaxation of silver import restrictions in July has also contributed to the surge in demand. The relaxation, which was formally announced under the BIS (Hallmarking) Amendment Regulations, 2026, has made it easier for jewelers to import silver. This led to a sharp increase in imports.

According to the Hallmark Unique Identification, the charge applicable to silver jewellery remains unchanged at Rs 35 per article.

Industry insiders have also raised concerns about the potential for counterfeit hallmarking marks. As the higher fee may incentivize unscrupulous jewelers to resort to deception. The Indian Standards have been put in place to ensure that silver jewellery is marked with a unique identification number.

Making it easier for consumers to identify genuine products.

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With the festive season just around the corner, consumers are expected to take advantage of the affordable prices of silver. The HUID, a government initiative to promote the use of hallmarking marks, has also been promoting the use of hallmarking marks to ensure the authenticity of silver jewellery.

India Bullion, a leading bullion trading company, has also expressed its confidence in the growing appeal of silver.

We expect a significant increase in silver purchases during the Diwali season, with some specialists forecasting a 17-18% rise, said Mehta. The affordability of silver, combined with its investment appeal, makes it an increasingly attractive choice for consumers.

Pralhad Joshi, the Minister of State for Mines, has also commented on the government's relaxation of silver import restrictions.