SALEM: The price of silver surged to a record Rs 3.60 lakh per kg, triggering a sharp 90 per cent fall in orders for silver goods in Salem district and leaving more than two lakh workers in silver workshops without regular work.
Salem has around 10,000 silver workshops across areas such as Sevvapet, Gugai, Sivathapuram, Panangadu, Maniyanur, Kondalampatti, Selathampatti and Andipatti. The district is known for its silver anklets, which are exported to other States and overseas.
Silver prices have been rising steadily, reaching Rs 3.60 lakh per kg and Rs 360 per gram on Friday, up Rs 20,000 from Rs 3.40 lakh per kg two days ago.
Traders said prices were climbing at lightning speed as industrialists continue to invest heavily in silver for investment purposes, and warned that rates could rise further in the coming days.
With workshops receiving only about 10% of their usual orders, production units remain largely idle, causing widespread distress among workers dependent on the trade.
S Anandarajan, president of the Salem District Silver Anklet Manufacturers’ Handicraft Association, said silver prices were rising on par with gold.
“In January last year, silver was priced at Rs 1.10 lakh per kg. In just one year, it has gone up by about Rs 2.50 lakh. Normally, new orders peak during the Tamil month of Margazhi ahead of Pongal, but this year, nearly 90% of the regular orders have disappeared due to the price rise,” he said.
He attributed the surge to global economic competition, investment-driven buying by industrialists, and the Reserve Bank of India’s announcement that silver can be pledged with banks for loans starting in April, which has further pushed up demand.