Buyers scramble for silver, jewellers run out of stock

CHENNAI: As gold prices rise to astronomical numbers, making it too hot to touch, small buyers and investors are rallying to buy silver bullion across Tamil Nadu, leaving jewellery stores and bullion traders in Chennai and other districts completely out of stock.

With supply lines stretched, some jewellers are now asking customers to pay the price prevailing on the date of delivery, which could take anything upward of 10 to 20 days, given the sharp increase in demand.

According to the Jewellers and Diamond Traders Association, Madras, a gram of silver was sold at Rs 190 on Saturday evening, up from Rs 187 in the morning. Silver prices have been climbing sharply in recent weeks, from Rs 97 per gram on January 1 to Rs 136 on September 1 and Rs 161 on October 1. Gold, meanwhile, touched Rs 11,500 per gram on Saturday, pushing more investors towards silver as an affordable alternative.

B Sabarinath, president of the Tamil Nadu Jewellers Federation, said, “the physical demand for silver has increased drastically, and it now takes around 10 days for new stock to reach customers. Unlike gold, there are limitations due to transportation and sourcing issues. Silver is both imported and procured from Mumbai.”

Retailers across Chennai reported that silver bars have completely sold out. A famous Kerala-based jeweller in T Nagar said that even when buyers offered to pay extra, only 100 grams could be arranged for a request for 500 grams, and it was sold within minutes. Another retailer in Poonamallee said fresh stock would take at least 20 to 25 days to arrive, while a jeweller in Anna Nagar confirmed that new orders are being accepted only at future rates, depending on the delivery date.

M Somasundaram, a consumer activist, said he purchased 6 kg of silver bars at Rs 163 per gram a few days ago through an online store in Tiruchy. “The same seller called me on Saturday, asking if I was willing to resell, since even online stores are now out of stock. Bullion bars are preferred because there are no making charges, and only 3% GST is applicable, making them a better investment option,” he said.

A jeweller in Nungambakkam said the shortage is not limited to Tamil Nadu. “Pure silver bars are out of stock even abroad," he said, adding that consumers are willing to pay more to get immediate delivery. "If a kilogramme of silver costs Rs 1.6 lakh, customers are now paying up to Rs 1.82 lakh to get immediate delivery as a premium, or they wait 10 to 15 days. The demand has been unusually strong. Earlier, buyers would pause purchases even for a small rate drop, but not now,” he said.

Jewellers say the trend is likely to persist, as silver’s industrial use in solar panels and electric vehicles continues to expand. Combined with global supply tightness and rising investor interest, they expect the demand to remain high through the festive season.

Steep climb

January 1, 2025 - Rs 97 per gram

September 1, 2025 - Rs 136 per gram

October 1, 2025 - Rs 161 per gram

October 11, 2025 - Rs 190 per gram