Silver has always been the second priority compared to gold, but of late there has been a huge jump in the price of gold and the price per ten gram is Rs. 1.50 lakh has been crossed. Due to which Silver now looks set to perform brilliantly in India. Gold prices remain high, making it beyond the reach of many middle-class Indian buyers. In such a situation, silver is slowly attracting people’s attention towards itself. From ornaments and figurines to furniture, jewelers and traders offer a variety of silver products to attract buyers and investors. The once overlooked metal is now emerging as a potential star in the festive season starting on October 11.

Demand for silver will be high

Several jewelers and industry experts said in an ET report that silver is likely to increase its share of jewelery purchases this festive season. Nagnesh Pachchigar of SN Jewellers, a resident of Surat, says in a media report that I am a third generation diamond jeweller. But today I earn more from silver than diamonds. Now 35 percent of their annual income comes from silver. The price of 10 grams of 24 carat gold in India is around 1.5 lakh rupees. For the same amount, buyers can buy around 650 grams of silver.

This festive season, Pacchigar’s entire focus is on silver. Consumer preferences have changed. He said middle class Indians are now opting for silver items as inexpensive gifts. Pachchigar said that silver is clearly the next gold. I expect that 40 percent of our annual silver sales will be during the festive season in the month starting from Navratri.

Purchases will increase by 18 percent

India Bullion and Jewelers Association National Secretary Surendra Mehta said that we estimate silver purchases this Diwali season to increase by 17-18 per cent compared to the same period last year. He said there was no supply problem, as the government in July eased restrictions on silver imports that had been imposed in May (these restrictions were imposed in part to stem the flow of foreign currency). The impact was immediate – according to data from the Ministry of Commerce, silver imports surpassed $1 billion in August, up 127 percent from last year.