India imported approximately 197 tonnes of silver in June 2025, marking a significant 81% increase compared to 109 tonnes in June 2024.
Despite this surge, June’s silver imports remain lower than the record 544 tonnes imported in May 2025, reflecting a cooling of demand after an exceptional spike.
Silver Outshines Gold
Driven by superior performance, silver is starting to overshadow gold. Between April and July 2025, silver prices have surged by 21%, compared to just 5% for gold.
Silver ETFs in India witnessed unprecedented inflows in June, totaling 20.04 billion rupees, up from 8.53 billion rupees in May.
Industrial Demand Powers the Rally
This momentum is largely attributed to strong industrial demand, particularly from solar energy and electric vehicle sectors, which rely on silver for solar panels and semiconductors.
Record-High Local Prices
Silver in India hit a new all-time high of ₹114,875 per kilogram (approximately $1,336).
Interestingly, this surge has not discouraged buyers — unlike typical investor behavior when prices peak.
Monthly Silver Imports (tonnes) May 2025 544, June 2025 197
Although imports slowed from May’s peak, June’s figure remains significantly higher than the same month last year, highlighting sustained investment momentum.
May 2025 silver imports surged 431% compared to May 2024 (544 tonnes vs. 103 tonnes), underscoring the broader structural shift.
A Changing Landscape: Investors Drive Demand More Than Industry
The persistent demand despite high prices signals a shift: investors are now leading silver’s growth story, overtaking industrial users.
In India — historically a gold-centric market — silver is gaining traction as a portfolio diversification tool, especially as its performance outpaces gold.
With silver nearing a 14-year high, many investors are reconsidering their traditional preferences.
Investor Testimonials
“Gold was my safe bet for years,” says investor Umesh Agarwal to Reuters.
“But this week, I bought my first 1-kg silver bar. I hope silver follows the same rewarding path.”
Silver’s Stronger Returns
Silver prices in India have risen 21% over the past three months, compared to 5% for gold — a reversal from last year, when gold climbed 34% vs. 23% for silver.
Industrial Demand Continues to Rise
The surge is being fueled by both investment flows and growing industrial usage, particularly in solar panels and EVs, with demand now outstripping production.
Chirag Thakkar, CEO of Amrapali Gujarat, a major silver importer, explains:
"Typically, when prices rise, investors book profits and reduce exposure. But this time, demand remains robust despite high prices."
Record Inflows to Silver Funds
According to the Association of Mutual Funds in India (AMFI), silver ETFs recorded record inflows of ₹20.04 billion in June, up from ₹8.53 billion in May.
In Q2 2025, silver ETFs attracted ₹39.25 billion, outpacing gold ETFs, which collected only ₹23.67 billion.
Vikram Dhawan, Head of Commodities at Nippon India Mutual Fund, notes:
"ETFs offer a practical way to access silver, which is otherwise heavy and costly to store or transport."
Silver Gains Ground in Both Urban and Rural India
Amid stock market volatility following U.S. President Donald Trump’s announcement of new tariffs, many investors diversified into precious metals — especially silver.
A Mumbai-based bullion dealer notes that silver, traditionally favored by conservative rural buyers, is now attracting urban investors seeking alternative assets.
According to the Silver Institute, individual investment demand in India rose 7% year-on-year in H1 2025, driven by expectations of continued price appreciation.
Silver Imports Soar as Gold Declines
In a clear sign of shifting preferences, India’s silver imports in May jumped 431% year-on-year to 544.1 tonnes, while gold imports fell 25% to 30.5 tonnes, according to data from India’s Ministry of Commerce.
Follow the latest news on Google News
