India’s Silver Demand Surges Amid Record Prices and Industrial Boom
India's silver imports skyrocketed to $5.9 billion in the first four months of the year, marking a 400% increase from the fourth quarter of 2024. The surge is driven by robust demand from jewelry buyers, physical bar investors, and industrial sectors like electronics and solar panels. Historically a major silver consumer, India is now accelerating its purchases at an unprecedented pace.
The Nifty Metal Index, reflecting the performance of mining and metals companies, has posted its strongest quarterly gain since 2018, outperforming the broader Nifty 50. The metals-to-main-index ratio has reached an 11-year high, with silver leading the rally. Meanwhile, global spot silver prices jumped 5% to $94.41 an ounce, peaking at a record $94.61, and have climbed over 32% since January.
Despite the price surge, physical silver in India is trading at a discount of ₹10,000 per kilogram. Dealers in Mumbai are offering silver at ₹292,628 per kg, below the landed cost of ₹302,628. MCX silver futures, however, surged 5.5% to ₹3.03 lakh per kg, underscoring the market's volatility.
