Silver jewellery demand rises as high gold prices push Indian shoppers to cheaper alternatives
IBJA expects Diwali-season silver buying in India to increase 17–18% year on year, while Senco Gold & Diamonds reports a 25–30% rise in silver volumes. Retailers see high gold prices broadening silver’s appeal, though sharp price moves may curb some purchases.
The development
India Bullion & Jewellers Association estimates Diwali-season silver buying will rise 17-18% from the corresponding period last year as high gold prices lift interest in silver jewellery. Senco Gold & Diamonds reports silver volume demand has risen about 25-30%, though price volatility is tempering purchases.
The numbers
- ₹89,537 per kg
- September 2024
- ₹1,41,918
- ₹2.32 lakh per kg
- 160%
- 24 months
- 17-18%
- 25-30%
- Rs 70-80 a gram
- Rs 100
- Rs 120
- Rs 150
- Rs 180
- Rs 220
- Rs 250
- Rs 400
- Rs 200
- February-March
- Rs 220-230
- 2026
- 3%
- 208.7 million ounces
- $121/oz
- 100
- 20%
- 680.5 Moz
- 2024
- sixth consecutive year
- $9.2 billion
- 44%
- 2025
Why it matters to operators and investors
Prioritize partnerships or acquisitions that add scalable silver design, sourcing and omnichannel capabilities, as silver becomes a broader entry point for price-sensitive jewellery shoppers.
What to watch next
- Silver price movement relative to gold, particularly whether the gold-silver ratio narrows materially before Diwali.
- IBJA festive sales data and reported silver volume growth from organised chains versus independent jewellers.
- Gold jewellery volume trends, average ticket size, average grams per transaction and old-gold exchange rates.
- Retailer commentary on silver inventory turns, gross margins, stock availability and hedging costs.
- Consumer demand for coins/bars versus wearable silver jewellery, which distinguishes investment-led buying from fashion substitution.
- Changes in import duties, hallmarking rules, financing availability or other policy measures affecting jewellery affordability.
- Organised jewellers expand silver design assortments, especially lightweight fashion jewellery, gifting, coins and festival-specific collections.
- Retailers increase silver inventory and accelerate procurement ahead of Diwali, raising exposure to silver price volatility and working-capital needs.
- Gold-focused chains promote exchange offers, EMI schemes and lower-carat or lightweight collections to preserve conversion rates.
- Jewellery brands intensify marketing around silver’s affordability, daily wear appeal and investment/gifting utility.
- Manufacturers shift production capacity toward higher-design-value silver products, increasing demand for skilled labour and design differentiation.
The counter-case
The apparent silver-demand surge may be more substitution than true category growth: shoppers priced out of gold could trade down temporarily, reducing average ticket size and potentially pressuring jewellery retailers’ revenue and margins. A 17–18% seasonal forecast and one retailer’s 25–30% volume increase are not necessarily representative of the broader market. If silver prices remain volatile or discretionary spending weakens after Diwali, the demand boost could fade quickly.