India Faces Silver Shortage and Price Surge Ahead of Diwali Celebrations

India is experiencing a silver shortage with prices rising sharply ahead of Diwali, impacting consumer demand and investment activities in the worlds largest silver market.

• Silver prices in India have surged approximately 10 percent above international levels due to heavy demand during the Diwali festival, the most significant period for jewelry purchases.
• Jewellers across India are struggling to meet the heightened consumer demand for silver as festival celebrations approach, leading to a temporary pause in new purchases by Silver Exchange-traded funds.
• Global silver demand has outstripped supply for the past four years, further exacerbating the situation in India as consumers increasingly turn to silver and gold for investments during festive seasons.