This festive season, Indians may opt to buy silver instead of gold as prices of the yellow metal stay high despite the recent fall. Silver, traditionally playing a supporting role to gold in India’s jewellery market, is now poised for a much bigger moment.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.
Betting on silver instead of gold
Jewellers and traders are expanding their offerings, ranging from ornaments and idols to furniture, to draw both consumers and investors. Silver, once largely overshadowed by gold, is emerging as a possible standout this festive season, which begins with Navratri on October 11.Several jewellers and an industry expert told ET that silver is expected to make up a greater proportion of jewellery purchases during the festival period.Why silver is gaining ground this festive season
- Affordability for middle-class buyers: At approximately Rs 2.3 lakh per kg, silver provides a much cheaper starting point than gold.
- Investment appeal among affluent consumers: Some buyers are anticipating further appreciation, with hopes that prices could climb back to Rs 4 lakh per kg.
- Growing contribution to jewellers’ earnings: One jeweller says silver now generates 25-30% of total revenue, compared with 10% two years ago.
“I am a third-generation diamond jeweller based in Surat. But today, I earn more from silver than from diamonds,” said Nagnesh Pachchigar of SN Jewellers. Silver contributes up to 35% of his yearly revenue.Also Read | Unscrupulous jewellers may use fake stamps to mark your gold: As hallmarking charges rise to Rs 75 from Rs 45 Gem and Jewellery Domestic Council flags risk of rise in fraudstersAt current prices, 10 grams of 24-karat gold costs around Rs 1.5 lakh, an amount that would buy approximately 650 grams of silver.Pachchigar is placing his biggest bets on silver this festive season, reflecting a clear change in what consumers are choosing to buy. He said middle-class households are increasingly opting for silver articles as gifts because they are more affordable.“Silver is clearly the next gold. I expect 40% of our annual silver sales only during the monthlong festive season starting with Navratri,” Pachchigar said.Surendra Mehta, national secretary of the India Bullion and Jewellers Association, said, “We estimate that silver buying during this Diwali season will rise by 17- 18% from the corresponding period last year.”According to Mehta, availability is no longer a hurdle for the market. In July, the government relaxed restrictions on silver imports that had been imposed in May, partly as a measure to limit foreign exchange outflows. Imports responded sharply, crossing $1 billion in August, a 127% increase from the same month a year earlier, commerce ministry data showed.
Gold hallmarking rates rise
Meanwhile, gold hallmarking, which enables buyers to check the purity of the metal they are purchasing, now comes at a higher cost. The increase has also triggered fears that counterfeit stamps could become more common, with fraudsters passing off fake hallmarks as genuine.The industry is concerned that the higher fee may prompt dishonest jewellers to use forged hallmarking marks to avoid the additional expense.This risk is being viewed as particularly significant in tier-2, tier-3 and tier-4 cities, where awareness among consumers is still relatively low.Although buyers ultimately bear the hallmarking charge when they purchase jewellery, many do not know that the Hallmark Unique Identification (HUID) number can be checked using the Bureau of Indian Standards’ Care mobile application.The GJC has approached consumer affairs minister Pralhad Joshi and the BIS, seeking a rollback of the fee to its earlier level of Rs 45 per article from the current Rs 75.The charge applicable to silver jewellery remains unchanged at Rs 35 per article.The new charges were formally announced under the BIS (Hallmarking) Amendment Regulations, 2026, notified on September 14, 2026.
