“Bhaav Rs 2 lakh chal raha hai (The rate is presently Rs 2 lakh),” said a seller in Zaveri Bazaar to a customer who walked into his store to inquire about the per kilogram price of silver. To put things into perspective, the per kilogram value of silver, as per the India Bullion Jewellers Association’s closing rate on Tuesday, was Rs 1.78 lakh.
The precious metal is currently being sold at a premium of up to Rs 30,000 in the jewellery market, several sellers told NDTV Profit. The premium is only expected to increase further.
Meanwhile, almost all traders have stopped taking orders for silver during the festival season.
Explaining the situation, a seller told NDTV Profit on the condition of anonymity that there is immense scarcity of physical silver right now. “Hence, whenever a buyer comes to us, we have to look at the premium they are willing to pay. We also have to maintain our stock; otherwise, our own storage would deplete. We need to replace the quantities we sell to maintain our reserve as well,” the seller said.
One trader said demand has been so strong that a festival sale planned for seven to ten days saw stocks run out within just three days. The buying frenzy for silver, they noted, is not limited to India. Countries such as Australia, Turkey, and China are also witnessing a similar surge in demand, leading to a massive backlog in deliveries and a severe global shortage.
Anil R Jain, a leading wholesaler, said no new silver orders are being taken for Diwali due to the scarcity of physical silver. He added that while there are no major issues with gold supply for now, the shortage of silver is likely to persist until at least Diwali.
Hitesh Subhash Jain, chairman of the Zaveri Bazar Welfare Association, said silver seems to be emerging as the new gold. He confirmed that as of last evening, a premium of over Rs 30,000 was applicable on silver and that traders have stopped taking fresh orders for Dhanteras. Despite the supply crunch, he said he remains optimistic about silver prices and believes buyers who hold the metal until 2030 could see significant returns.
Lalit Palrecha of Lalitkumar Pukhraj Jewellers said there could be a temporary correction in silver prices around November. However, he expects overall appreciation in the long term to continue.
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