demand for silver
There is a sharp increase in the prices of silver in the country. Even gold has paled in comparison to the shine of silver. According to reports, there is a shortage of silver in the market. Due to increase in demand its prices are sky high. In big cities like Delhi and Mumbai, silver has crossed the mark of Rs 1.89 lakh per kg, while in Chennai it has reached Rs 2 lakh. People want to buy silver despite the rising prices. In such a situation, amidst the fear of hoarding, high demand and speculation, the government has also become strict. The Commerce Ministry has started monitoring this situation.
According to media reports, the ministry is checking where the huge amount of imported silver has gone? Has anyone stocked it on a large scale? Rajesh Rokade, Chairman of All India Gems and Jewelery Domestic Council, said that the market is in panic mode. Those who are selling are charging arbitrary prices. That’s why we have started pre-booking for easy delivery. Pankaj Arora, President of All India Jewelery and Goldsmith Federation of Delhi, said, ‘Demand has increased a lot. The situation will become normal soon.
Silver shortage in the country
India depends on silver for silver utensils, jewellery, coins, bars and for industrial uses like solar energy and electronics. Reports say that the country fulfills more than 80% of its silver demand through imports. Silver imports fell 42% to 3,302 tonnes in the first eight months of 2025, while investment demand, especially from ETFs, reached a record high. Meaning demand increased faster than supply. This surge absorbed the imported excess stock of 2024, causing a shortage. Now extra foreign shipment is required.
Ban on investment in ETF
The concern of fund managers has increased due to the increase in silver rates in the country. Prices are rising due to lack of supply. Kotak Mahindra Asset Management had earlier reduced investment in ETF. UTI Asset Management Company said on Saturday that new lumpsum and switch-in investments in UTI Silver ETF Fund of Funds have been temporarily stopped from October 13, 2025. The company says that this decision was taken due to the market situation and shortage of physical silver in the country. Silver prices are at a higher premium than the international market, which is impacting the valuation of the fund.