COIMBATORE/CHENNAI/MADURAI/TIRUCHY: As gold prices have touched an all-time high in the market and continues to soar, there is an influx of investments in silver, forcing customers to wait up to 10 days to purchase silver bullion. This has led to a rise in demand for silver in the market, with a projection that prices would rally further in the coming months.
B Muthuvenkatram, president of Coimbatore Jewellery Manufacturers Association, said, “There is a sudden variation in silver prices in the market recently. The price of silver on September 15 was Rs 1.45 lakh per kg, and was Rs 1.9 lakh per kg on September 13.
On Friday, it rose to Rs 2.03 lakh per kg. Customers now purchase silver bullion instead of silver ornaments, resulting in a shortage of silver bars. Due to shortage, after we take orders from customers, we ask them to wait up to four days. However, most suppliers take up to 10 days to deliver orders.”
Ashyanth, the director of a Coimbatore jewellery firm, said, “While there is a shortage of silver bullion in the market, we are able to maintain stock in our shops. However, smaller firms are unable to do so as they purchase daily, based on the orders they get.”
Talking about the price of edible silver foil and its impact, S Jegan, director of Sree Annapoorna Sree Gowrishankar Hotels, said, “As there are sudden fluctuations in the price of silver in the market, the effect will also trickle down to edible silver being used to prepare sweets. However, we are yet to increase price of sweets which use silver foil. We will decide in the coming days.”
“Tiruchy has not seen a silver rush in a long time,” said M Saravanan, proprietor of the Jothison Jewellery located in Palakarai. “For the first time in two months, we are seeing customers queue up to purchase silver bars. The demand is so high that we often end up paying more, just to deliver orders. In just the past month, our silver sales have shot up by 40%.”
However in Madurai, though there has been an increase in interest to purchase silver bars, overall demand remains moderate. “Sufficient silver stock is available and customers are able to make purchases without delay,” an individual working with a reputed jeweller in Madurai said.
Anantha Padmanaban, former chairperson of the All India Gem and Jewellery Domestic Council, said silver prices in Chennai have already crossed the Rs 2 lakh per kg mark ahead of the festive season, and could even climb up to Rs 3 lakh in the coming months.
He said global instability and trade imbalances, which have already pushed gold prices, are likely to fuel silver’s rally. Silver sales during the festive season are expected to grow by 10%–20% compared to last year, while demand for gold may see a dip by 30%, he added.
