Jain said the metal remains undervalued despite the record levels. “We have broken the all-time highs, and probably silver will create a new, bigger high—maybe somewhere around $60 to $65 per ounce,” he added.
Abhay Ranka of Navkar Sterling Silver echoed Jain’s view, projecting that silver could touch $65–$70 per ounce in the near term. “We may see a smaller correction in between, which might create a panic, but after that, it is going to be a bigger rally, for sure,” Ranka said. He also highlighted the supply pressures in India, noting a minimum 15-day waiting period for buyers and premiums of ₹15,000–₹20,000 for immediate deliveries.
The shortage is being compounded by limited imports. Jain said silver coming from Dubai or London is selling at a premium of $2–$4 an ounce, and much of the metal booked for India has yet to arrive. “India does not mine much silver; we are heavily dependent on imports. There is high demand due to Diwali, but there is no availability of raw material for manufacturing,” he explained.Gold, meanwhile, is also seeing strong demand in India, although it is not facing the same supply squeeze as silver. Saiyam Mehra of Unique Chains said retailers have been steadily building stock for months and are benefiting from the recent rate rises. “There is a lot of buying happening on the ground, whether it is small lightweight jewellery for the upcoming season or heavy jewellery. End consumers feel that gold rates may increase further in the coming days,” he said.
Mehra also noted a surge in the exchange of old gold for new, which now accounts for around 17–20% of purchases. Previously, it was just 7–10%. “The same jewellery will be refurbished, and new jewellery will be made from it, especially given the recent rate hikes,” he said.
He added that 22-carat gold remains the standard, but 18-carat jewellery is gaining popularity in some regions, and 9-carat pieces may see more demand in the coming months. On prices, Mehra said gold rates could touch ₹1,32,000–₹1,33,000 by November, with the possibility of reaching ₹1,50,000 by the first half of next year.
The sharp rally in both metals comes amid global uncertainties, including renewed US-China trade tensions, private investment demand, and expectations of further rate cuts by the US Federal Reserve. In India, silver has already outpaced gold in 2025, rising 85% compared with gold’s 58% gain, highlighting the strong appetite for the white metal ahead of the festive season.
Watch accompanying video for entire discussion.
