Now Reading: High gold prices push middle-class buyers towards silver jewellery
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High gold prices push middle-class buyers towards silver jewellery
High gold prices push middle-class buyers towards silver jewellery
With gold prices remaining elevated, middle-class Indian buyers are turning to silver as a more affordable alternative this festive season, jewellers and industry experts say. Silver, traditionally secondary to gold in Indian…
With gold prices remaining elevated, middle-class Indian buyers are turning to silver as a more affordable alternative this festive season, jewellers and industry experts say. Silver, traditionally secondary to gold in Indian jewellery, is expected to account for a larger share of purchases during the festival period starting with Navratri on October 11.
Nagnesh Pachchigar, a third-generation diamond jeweller in Surat, said silver now makes up 35% of his annual revenue and he expects 40% of annual silver sales during the month-long festive season. Surendra Mehta of the India Bullion and Jewellers Association estimates silver buying this Diwali will rise by 17-18% from last year. The government eased silver import curbs in July, and imports jumped to over $1 billion in August, up 127% year-on-year.
Indian Opinion Analysis
Silver has long been the poor cousin of gold in Indian households, used mainly in utensils and idols during festivals while gold served as the primary store of value and wedding jewellery. The price gap has now become stark: 10 grams of 24-karat gold costs roughly Rs 1.5 lakh, while the same amount buys about 650 grams of silver. This arithmetic is reshaping buying patterns among the salaried middle class, who still want to give metal gifts during Diwali and weddings but find gold out of reach. The government's July decision to relax silver import restrictions, after tightening them in May to protect foreign exchange reserves, has also helped stabilise supply. Whether this shift becomes structural will depend on whether gold prices stay elevated through the wedding season that follows Diwali. The silver import data for September and October, due from the commerce ministry by mid-November, will offer the first hard signal.
Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
