Festive season could spark a rebound in silver demand if prices stay stable: Silver Emporium MD

Silver demand in India could see a strong revival in the coming months, with the August-October festive and wedding season typically accounting for nearly half of the country's annual silver purchases, according to Rahul Mehta, Managing Director of Silver Emporium.

Mehta said demand is already showing signs of improvement after a weak spell, but sustained recovery will depend on price stability. Silver prices have remained volatile in recent months, making consumers cautious about fresh purchases.

"If the silver pricing being stable as they are, demand will definitely pick up," Mehta said.



The industry has seen retail demand return in recent weeks, particularly for silver dinner sets and gifting products ahead of festivals and weddings. Much of this demand comes from customers exchanging old silver holdings for new products rather than making entirely fresh purchases.

According to Mehta, volumes have risen about 30% compared with the previous two months, a positive sign after a difficult period for the industry. However, overall business remains 25-30% lower than a year ago.

Silver jewellery is also gaining traction as high gold prices push consumers to look for more affordable alternatives. Existing gold jewellery retailers are increasingly expanding into silver, helping broaden the market.

Mehta said interest in opening silver stores has surged sharply, rising 300-400% over the past six months. Many of these new stores are expected to target customers who may shift from gold jewellery to silver because of elevated gold prices.

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On the supply side, Mehta said there is no shortage of silver despite import restrictions. The market is supported by adequate inventories and higher recycling activity. In fact, silver exchanges have increased significantly as consumers swap older holdings for new products.

"There is enough silver available in the market, there's a lot of recycling silver is also there in the market," he said.

However, investment demand remains weak, which is limiting any meaningful rise in market premiums. Buyers are still uncertain about the direction of silver prices and are waiting for greater stability before increasing their exposure.

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