Silver Emerges as a Hot Investment Choice Amid Price Surge
Silver is rapidly gaining popularity as an investment option, not just for its decorative value. Consumers across India are now actively purchasing silver bars and coins, viewing them as a solid financial asset. This shift marks a significant change in how people perceive precious metals.
Jewellery Stores Witness Unprecedented Demand
Jaipur's Amrapali Jewels has started selling silver bars directly to customers upon request. Tarang Arora, the CEO and creative director, explains the transformation. He says silver was never considered a commodity before. Now, an investment mindset is taking hold. People are keen to buy silver bars, and demand remains very healthy.
Arora emphasizes that two things define permanence: land and precious metals. He predicts that in ten to fifteen years, silver will become the new gold. This sentiment is echoed by other industry players.
Sales Figures Show a Dramatic Increase
Aditya Modak, co-founder of Gargi by P N Gadgil & Sons, reports a fifty percent year-on-year rise in silver bar and coin purchases during FY26. Several factors drive this surge. The huge spike in gold prices has made gold unaffordable for many buyers. Silver offers a more accessible alternative.
During Diwali, corporate gifting saw a shift. Companies ordered silver coins with lower grammage due to the price rise. However, individual consumers did not hesitate to invest. Modak notes heavy buying of silver bars and bullion in the past three months, fueled by fear of missing out. He expects this frenzy to subside slightly now.
Analysts Weigh In on Risks and Returns
Kishore Narne, executive director at Motilal Oswal Financial Services, provides a balanced perspective. Silver does not offer the same stability as gold. Yet, it has delivered higher returns historically. These higher returns come with increased risks. The potential for correction exists in the short term, but long-term prospects for price growth remain strong.
Global Factors Influence Local Markets
Last week, international silver prices crossed ninety dollars per ounce. Geopolitical tensions and high demand from industries like electric vehicles, solar power, and semiconductors pushed prices upward. A weakening rupee further elevated local spot market prices, pushing them above three lakh rupees per kilogram.
Ajith Singh Rajapoopaty, business head at Shaya by CaratLane, observes that price spikes directly boost consumer purchases of bars and coins. This trend continues unabated. During Diwali, despite high prices, silver coin sales jumped to thirty percent of their overall business. Normally, this figure stands at just five percent.
Future Outlook Remains Volatile
HSBC analysts anticipate a wide and volatile trading range for silver in 2026. The market dynamics suggest ongoing fluctuations. Investors should prepare for both opportunities and risks in the coming months.
The silver rush highlights a broader trend. As gold becomes less accessible, silver steps into the spotlight. It offers a viable investment avenue for those seeking precious metal exposure. Jewellery stores adapt quickly, catering to this new demand with tailored products and services.
