Indian Consumers Sells 100 Tonnes of Old Silver in a Week Amid Strong Rally in Price

Silver has emerged as an unexpected source of cash for Indian households, with 100 tonnes of old silver sold in just 1 week amid soaring prices, as per India Bullion & Jewellers Association (IBJA). 

This sharp uptick far exceeded normal monthly volumes and marked a significant spike in supply from retail sellers. 

Record Silver Prices Drive Surge in Scrap Metal Sales 

Retail silver prices reached an all-time high of ₹1,78,684 per kg on December 4, 2025, before settling back to ₹1,75,730 the following day. Despite the slight dip, the value remains nearly 20% higher than recent lows.  

Typically, the market sees 10–15 tonnes of old silver per month. This sudden sale of 100 tonnes in a week marks a significant deviation, driven by both profit-taking and the need for liquidity during the wedding and holiday travel season. 

Supply Constraints Fuel Price Gains 

The global silver market has been dealing with a persistent supply-demand imbalance since 2020. In 2025, mined silver output remained flat at 813 million ounces, with gains in countries like Russia and Mexico offset by declines in Peru and Indonesia.  

The Silver Institute reported that primary silver production was just 227 million ounces in 2025, while global demand is estimated at 1.117 billion ounces, creating a shortfall of nearly 95 million ounces. 

The fact that silver is mostly produced as a by-product of other metals like gold and zinc limits the ability to increase its production independently. This structural constraint helped propel prices higher, encouraging consumers to release silver held as household items. 

Read More: Mandatory HUID Drives Surge in Silver Hallmarking: Over 17 Lakh Articles Registered! 

Conclusion 

The sudden offloading of 100 tonnes of old silver by Indian consumers within a week showcases how precious metal prices influence household behaviour. The combination of high prices and festive season cash needs resulted in unexpectedly high silver sales, reflecting the adaptive approach of households during peak demand periods. 

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