A big and interesting change is being seen in the Indian bullion market this festive season. Due to the continuously skyrocketing prices of gold, the common man and the middle class are now increasingly turning to silver as an alternative to gold for weddings and festival purchases. Market experts and commodity analysts believe that this time on the auspicious occasion of Diwali, there may be a huge jump of up to 18 percent in retail and investment demand for silver as compared to last year. After the price of gold is out of the budget, silver is not only becoming a means of maintaining tradition for the middle class, but it is also emerging as a strong and affordable investment option.
Rising prices of gold and changing attitude of the common man
In the last few months, there has been a record-breaking rise in the price of gold in the Indian markets, due to which gold is gradually becoming out of reach of common consumers. It has now become quite challenging for middle class families to buy gold jewelery during the wedding season and big festivals like Diwali. This is the main reason why consumers are now giving more priority to silver jewellery, coins and ingots than gold. Bullion traders say that the pace of gold sales may slow down during the festive season this year, while a huge crowd of buyers is expected at the silver counters. Due to this changing trend of the middle class, the entire equation of the market seems to be changing.
Estimates of up to 18% rise in demand for silver in the festive season
According to commodity market experts and various trade reports, a huge increase of about 18% can be recorded in the demand for silver during Diwali shopping this year. Not only in traditional jewellery, investors are also investing money in silver on a large scale through silver ETFs and digital platforms. Jewelers have also intensified their preparations to meet the festive demand. Experts believe that due to increasing interest of jewelery lovers in the retail market along with industrial demand, the shine of silver seems to be overshadowing that of gold in this Diwali market, due to which there is a lot of enthusiasm among the traders.
Why is silver becoming the first choice of middle class and investors?
Apart from its affordable price, the reason behind increasing people's attraction towards silver is its strong investment potential. Economic experts argue that due to the change in the gold-silver ratio and the continuously decreasing supply of silver in the international market, investors are expecting better returns in it. While on one hand the high prices of gold have tied the hands of the common man, on the other hand silver has emerged as a big investment option in low budget. Its growing industrial demand in the electric vehicle, solar energy and electronics industries has also made its future more secure, due to which common investors are not feeling much hesitation in buying it.