SALEM: Salem's traditional silver anklet makers are facing one of their toughest festive seasons in recent years, as skyrocketing silver prices and limited availability have disrupted production.
Normally, festivals like Diwali, Pongal, Akshaya Tritiya, and Onam bring a surge in orders, but this year, many manufacturers report that even existing orders cannot be completed because the valuable metal is in short supply.
C Sri Anandarajan, president of the Salem District Kolusu Manufacturers Kaivinai Sangam, said, "There is an unprecedented demand for silver in the market currently, and manufacturers are struggling to get even the quantity needed to finish existing orders. Salem has seven authorised dealers from whom silver can be procured, but all have stopped issuing the metal until October 23. Diwali falls on October 20, which means many festive orders are already slipping out of our hands."
Salem is home to around 10,000 silver anklet manufacturing units, employing over 1.15 lakh people, a workforce that includes both men and women who rely on the craft for their livelihoods. Orders for silver anklets this season have dropped to only about 25% of what they were in previous years.
"Even the few orders we have received cannot be completed because there is no metal," Anandarajan said. "Before Diwali, there was hardly any work at all. About 30% of the workforce has taken up daily wage jobs elsewhere, while the rest remain idle, waiting for silver to arrive so we can resume work."
The shortage also coincides with a dramatic rise in silver prices over the past month. On September 13, 2025, silver was priced at Rs 1,33,000 per kg. By October 13, it had surged to approximately Rs 1,85,000 per kg - an increase of Rs 52,000, or nearly 39% in just 30 days. Anandarajan said, "Gold prices have reached record highs, and silver is climbing rapidly alongside. Dealers are holding back silver in anticipation of even higher prices, which has intensified demand and made procurement extremely difficult."
A Anand Kumar, president of the Salem Gold and Silver Retail Merchants Association, said the rise in silver prices has also shifted consumer behaviour.
"Silver is now treated as the new gold. Many people cannot afford gold, so they are turning to silver for investment and savings, which has not happened before," he said.
"However, the supply is extremely limited. A manufacturer may have to wait over 10 days for just 1 kg of silver, resulting in missed opportunities for anklet orders. People are increasingly buying silver bars and coins instead of ornaments like anklets."
"The price of silver is nearly double what it was last Diwali. Despite challenges, we are trying to adapt. One strategy is to produce lighter anklets, making them more affordable and keeping the craft alive," he added.
Salem's silver anklet industry, which makes over two lakh anklets every month and employs over a lakh, is in a pickle. Demand for silver is high, but artisans themselves are struggling to get the required metal. For the city's craftsmen, this Diwali season has become a test of resilience, as they struggle to maintain a centuries-old tradition.
