Silver Becomes the New Favourite as Demand Surges Across Sectors

Silver is witnessing one of its strongest phases in more than a decade, becoming a preferred choice for both industrial users and retail investors. A mix of strong buying, low recycling levels, and rising imports has pushed demand sharply higher, even as prices continue to rise.

Industrial Demand for Silver Has Grown By Nearly 10%-15% 

India’s industrial use of silver has increased significantly this year. Demand from industries is estimated to have grown by 10–15%, despite silver prices almost doubling. 

Manufacturers have continued to use silver across key sectors such as electronics, solar panels and advanced technologies. This steady demand shows the essential role silver plays in modern manufacturing, especially in fast-growing clean energy and semiconductor applications.

Silver Items See Heavy Retail Buying

Retail buying is another major driver of the recent surge. Silver kilo bars have become especially popular among investors seeking a more affordable alternative to gold. High-net-worth individuals and family offices have also increased their allocation to silve. Overall retail demand is estimated to be two to three times higher than last year, reflecting a strong shift in investor preference.

Silver Recycling Rate Falls to 6%-8%

Even with high prices, recycling of silver has declined. Historically, recycled silver makes up around 10% of supply, but this year the figure has dropped to about 6–8%. Many consumers are choosing to hold onto their silver rather than sell it, signalling strong optimism about future price gains. 

Imports Expected to Surge

With domestic demand rising and recycling shrinking, silver imports are expected to be two to three times higher than last year. The jump in imports highlights India’s growing appetite for silver across both industrial and investment segments. Prices in India are currently trading at a small discount due to a sharp recent rally, but global prices remain firm at around US$62 per ounce and above ₹1.9 lakh per kg on MCX.

Read more: RBI Decided to Cut Repo Rate by 0.25% to 5.25%: Retains Policy Stance as Neutral.

Conclusion

Silver has become a standout metal this year, supported by strong buying from industries and investors. Low recycling levels and rising imports point to sustained demand. Whether for technology, renewable energy or portfolio diversification, silver continues to build its place as a key asset in both global and Indian markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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