Indians sold an estimated 100 tonnes of old silver in one week, the India Bullion & Jewellers Association (IBJA) said, cashing in on strong gains in the price of the metal that on Wednesday hit the highest on record. Typically, just 10-15 tonnes of old silver reach the Indian market a month and the data for the week ended Wednesday indicate a scramble to take advantage of the price.
IBJA national secretary Surendra Mehta cited profit-taking, as well as household demand for cash because of the ongoing wedding season and holiday travel for the spike in old silver sales.
A large portion of this is scrap silverware and utensils, he said.
Silver hit a record high of ₹1,78,684 a kg in the retail market Wednesday, according to IBJA data. While the price came down to ₹1,75,730 Thursday, it is still about 20% higher from recent lows. Analysts say the rush to book profits may increase, as the price could hit the ₹2 lakh mark in the near term.
Silver prices have been driven by a supply squeeze, rising expectations of a rate cut in the US and the dollar’s contrasting performance against major global currencies and the rupee—the greenback softened globally but gained against the Indian currency.
“During Diwali and Dhanteras, silver hit ₹1.78 lakh per kilo, then slipped to ₹1.49 lakh. Now that prices are rallying again, people are offloading the metal to generate cash,” Mehta said.
Silver, with its price more than doubling from ₹86,005 per kg in 2024, has outpaced nearly every major asset class this year. In comparison, gold has gained roughly 60%.
Naveent Damani, head of commodities research at Motilal Oswal Financial Services, expects the rally to extend, driven by a widening supply deficit. He forecasts silver to hit ₹2 lakh per kg in the first quarter of 2026 and ₹2.4 lakh by the end of next year, with dollar-denominated prices potentially reaching up to $75 an ounce.
Global demand for silver has been outstripping supply since 2020, according to the Washington-based Silver Institute. Most silver mining happens as a byproduct of gold, lead or zinc mining. Therefore, unless mining of these metals goes up, supply of silver will remain under constraint.
Mined silver supply has been flat at 813 million ounces in 2025. And increased production in Mexico and Russia is offset by declines in Peru and Indonesia.
The Silver Institute estimates primary silver output to rise just 3 million ounces to 227 million ounces in 2025 over 2024. Total supply, including recycling, is projected to be 1.022 billion ounces, short of the estimated 1.117 billion ounces of demand.
