Silver sees increased buying despite record high prices

Pune: The buying sentiment for silver has strengthened with expectations of its price rising further despite hitting record highs in terms of pricing this year.Silver prices were trending at Rs 123,281/kg (without GST) in Sept compared to Rs 110,000/kg (without GST) a month ago. "Buying activity has picked up in the market over the last 15 days. Festive buying is yet to begin, but we are seeing more investor-led buying happening. There is an expectation that prices will increase by at least Rs 20,000-30,000/kg in the near future," said Anil Jain, a jeweller at Mumbai's Zaveri Bazaar."Basic calculations of gold/silver ratios indicate that silver is still undervalued compared to gold, and therefore I feel it is a good time to buy the metal," said Shailesh Tripathi, a resident of Wanowrie, who is also an active investor. On a year-to-date basis, silver prices are up 40% in 2025, driven by uncertainties over tariffs and volatility in international markets.Silver is predicted to hold its strength through the rest of this year, buoyed by investment flows and ongoing robust supply into industrial demand from solar, electric vehicles, and electronics. "Silver is expected to continue its northward journey towards Rs1.30 lakh/kg in the next few weeks in Sept and to Rs1.35 lakh/kg in the next few months before 2025 ends," said Dr Renisha Chainani, head (research) at Augmont.Demand in India has switched gears to coins, bars, and smaller denominations as people are looking at more affordable options. "We are seeing decent purchase activity. Customers are also walking in with old silver and exchanging it for new silver. Some festival-related purchases are also happening," said Inder Solanki, owner of Silver and Gold Palace Jewellers at Camp.Another jeweller at Raviwar Peth said, "People are also coming to melt their old silver into bars because those command a higher value on sale. Everyone is in wait-and-watch mode because there are expectations of much higher price movements."Juhi Umrigar, a resident of Kalyaninagar, said that she plans to get her mother's old silver melted into bars and also purchase a few bars as an investment. "I resisted selling off silver when it hit Rs 90,000 a kg. I am going to hold on to it for some time before I sell," she said.