Gold's Rs 1.5 lakh price drives buyers to silver who get 650g silver at same price
At current prices, 10 grams of 24-karat gold costs around Rs 1.5 lakh, an amount that would buy approximately 650 grams of silver. With gold prices remaining prohibitively high for a large section of middle-class buyers, the white metal is steadily attracting attention. High gold prices have made the precious metal out of reach for several people.
During this festive season, Indian buyers may choose silver over gold as gold prices remain prohibitively high for many middle-class consumers. Silver, traditionally a supporting player in India's jewelry market, is emerging as a strong contender this year. With gold prices soaring to around Rs 1.5 lakh for 10 grams, 650 grams of silver can be purchased for the same price, making it a more affordable option.
Jewellers and traders are now expanding their offerings to include silver ornaments, idols, and even furniture to attract both consumers and investors. Silver, previously overshadowed by gold, is poised to become a standout product during the festive season, which kicks off with Navratri on October 11. Industry experts predict that silver could account for a larger share of jewelry purchases during the festival period.
Several factors contribute to the growing appeal of silver. Its affordability is a major advantage, with a price of about Rs 2.3 lakh per kilogram compared to gold's higher price point. Some affluent consumers are also hoping that silver prices could potentially soar back to Rs 4 lakh per kilogram in the future. Additionally, silver now generates 25-30% of total revenue for some jewellers, up from just 10% two years ago.
One jeweller from Surat, Nagnesh Pachchigar, who has a third-generation diamond jewelry business, now earns more from silver than diamonds.
One jeweller, Pachchigar, has placed his biggest bets on silver for this festive season, anticipating that middle-class households will increasingly opt for silver gifts due to their affordability. He expects that silver sales could surge by 40% during the month-long festive season starting with Navratri. The India Bullion and Jewellers Association estimates that silver buying during Diwali season will rise by 17-18% compared to the previous year.
The government has recently relaxed restrictions on silver imports, which saw a sharp increase from $0 billion in July to $1 billion in August, a 127% jump from the same period last year. This availability of silver has removed a significant hurdle for the market. However, the higher gold hallmarking rates have sparked concerns about potential counterfeit stamps.
Fraudsters may exploit the higher fee to pass off fake hallmarks as genuine, a risk particularly concerning in smaller cities where consumer awareness is still relatively low.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
