Jewellers see 10-20% silver rally; stock coins, utensils for festivals

A 25 per cent increase in silver price over the past two months has prompted jewellers in tier-2 and tier-3 cities as well as rural India to stock silver utensils and silver coins in anticipation of a robust demand during the upcoming festive and marriage season.

The sudden interest in silver, which had seen lacklustre sales for a while, has been sparked by the expectation that the commodity may witness a 10-20 per cent rally in prices in the run-up to the peak festive season, which is about a month away. Silver as an asset class is popular in rural India as well as smaller towns and cities.

“Over the past three weeks, jewellers have started stocking silver in the form of utensils and coins. The demand is mostly coming from tier-2 and tier-3 cities, small towns and villages. And this trend is being seen across India,” said Nitin Khandelwal owner of Khandelwal Jewellers.


The trade war between the US and China has triggered fears of a global economic slowdown, roiling equity as well as currency markets. This has resulted in gold prices moving up as investors flocked to the yellow metal, which is considered a safe haven. Silver prices have followed the upward trajectory of gold prices. On Wednesday, silver prices in global markets were around two-year highs after breaching the $18 an ounce mark in the previous session. Spot silver gained 3.14 per cent to $18.18 an ounce. In India, silver was trading at Rs 47,885 per kg in the spot market.