Silver prices have been steadily climbing, pushing the white metal into sharper focus for both investors and jewellery buyers. In Kolkata, silver is currently priced at Rs 242 per gram and Rs 2,42,000 per kilogram. While silver rates traditionally move in tandem with gold, recent international rallies have given the metal renewed momentum. Since the start of the year, prices have risen by around 5-7 per cent, but jewellers say interest has grown far more sharply.
Why hallmarking is key
Jewellers say consumers should insist on hallmarking, even though it is not yet mandatory everywhere
As demand rises, certification has become one of the most critical factors for buyers. Suvankar Sen, MD and CEO of Senco Gold & Diamonds, says consumers should insist on hallmarking, even though it is not yet mandatory everywhere.
“Hallmarking has also been approved for silver, though it is not mandatory yet. Whether it is coins, bars or jewellery, buyers should ask for the hallmarking mark. That gives them protection,” Sen said.
He also stresses the importance of buying from trusted sources. “Silver bars and coins are a good method to invest. Other forms like globules, should only be bought from reliable sellers because a consumer cannot check purity. With 100-gram or one-kilo bars, hallmarking and machine testing make verification easier.”
Plan purchases; avoid impulse buying
Silver is a more volatile metal than gold
Silver is a far more volatile metal than gold, making planning essential. Sen advises against investing a lump sum at one go. “Silver is a good buy for the long term. In the short term, buyers should average their purchase. Buy 30-40 per cent, wait, track the trend, then buy again. The purchase has to be planned, not emotionally driven.”
He added that buyers today have multiple options, from physical silver to digital silver and ETFs, depending on their comfort level.
Jewellery versus investment value
When in comes to jewellery, silver offers affordability but comes with caveats
From a jewellery perspective, silver offers affordability but comes with caveats. Making charges can range between 10 and 25 per cent and are often not recovered at resale. “Making charges is an issue,” Sen said “but we are launching new silver jewellery designs, including wedding jewellery, so people can also view silver as a long-term asset.”
Rising gold prices have also shifted preferences. “A heavy gold jewellery piece can cost five to seven lakh rupees. The same look in silver comes at nearly one-tenth the price. You get the visual appeal while still owning silver,” he said.
Tradition and changing attitudes
Silver has long been part of Indian households, particularly in the form of utensils and ceremonial items
Silver has long been part of Indian households, particularly in the form of utensils and ceremonial items. Sen noted that this continues, especially among Marwari and other communities. What has changed is how silver jewellery itself is being perceived.
“Earlier, silver jewellery was more about gifting or modern designs. Now people are realising silver can give returns and prices can go up. With gold becoming so expensive, silver is being taken more seriously,” he said, adding that exchanges of old silver are slowly being introduced.
Pure silver over lookalikes
While German silver remains popular for its price and design, it cannot replace pure silver as an asset
Gouri Ray, owner of Glow n Glitter in Jodhpur Park, said while German silver remains popular for its price and design, it cannot replace pure silver as an asset.
“German silver looks very similar, but silver is an asset. If you don’t want to wear it later, you can melt it and recover its value. You don’t get that with German silver,” Ray said.
Her store deals exclusively in 92.5 per cent pure silver. “People who truly like silver go for purity. When prices rise, they may buy smaller pieces, but they don’t shift to plated brass or German silver because those have no asset value.”
Will silver ever rival gold?
Silver may find a new base price, but gold will always hold its position, say experts
Despite growing interest, silver is unlikely to overtake gold. “Silver will not take over gold’s place. Gold has gone up about 60 per cent, silver nearly 100 per cent this year. Silver may find a new base price, but gold will always hold its position,” Sen concluded.