Explainer: Why silver prices are skyrocketing in India
Silver is suddenly a hot topic in India—local prices have jumped up to 10% higher than what's seen globally, all thanks to a serious supply crunch.
The rush for silver has gotten so intense that some exchange-traded funds (ETFs) have paused new sign-ups just to protect investors from paying inflated costs.
This isn't just an India problem either—worldwide, demand for silver has outpaced supply for four straight years.
Silver imports have dropped by 42% this year
Even though India depends on imports for most of its silver, shipments dropped by 42% to 3,302 tons between January and August 2025.
Why? Investment demand is through the roof, especially from ETFs that already soaked up extra supply last year.
With global supplies tight and shipping issues piling on, it's getting tougher—and pricier—for India to get enough silver.