Krishna B Goyal, Convener of the Silver Jewellery Panel at the Gem and Jewellery Export Promotion Council (GJEPC), highlighted that silver’s remarkable rally is driven by a structural supply-demand gap, with industrial consumption far outpacing production.

Key Factors Supporting Silver Prices:

• Industrial demand: Silver is now heavily used in electronics, electric vehicles (EVs), and battery manufacturing, creating sustained upward pressure on prices.
• Supply crunch in India: Premiums touched ₹40,000 around Diwali due to limited availability and strong investor demand.
• Jewellery demand: Younger consumers increasingly prefer lightweight, wearable silver jewellery for events like destination weddings, keeping volumes firm despite high prices.
• Cultural demand: Traditional purchases such as coins, utensils, and religious articles remain strong in Indian households.

Market Outlook:

• Silver consumption is still 7–8% higher than production, providing a bullish backdrop.
• Goyal expects prices to continue rising, though the pace may moderate compared to the past two years.
• Retail trend: Branded silver jewellery and standalone silver stores are likely to grow in India, reflecting changing lifestyles and everyday adornment needs.

The combination of industrial adoption, lifestyle-driven jewellery demand, and cultural habits makes silver a resilient market segment with continued upside potential.