Bengaluru: With silver prices touching historic highs, a noticeable surge in silver-focused businesses is reshaping the city’s jewellery landscape, especially in established shopping hubs such as Malleswaram, Jayanagar and Wilson Garden. Traders and jewellers are expanding operations to capitalise on growing consumer interest, driven largely by investment demand and the soaring cost of gold.
Silver prices climbed to a record ₹3.05 lakh per kg on Monday, prompting a renewed rush among buyers who view the metal as both an affordable alternative to gold and a promising investment option. Industry representatives say the number of stores specialising exclusively in silver jewellery has nearly doubled over the past year.
Investment demand drives silver buying
Jewellers say a significant portion of the demand is coming from customers purchasing silver bars and coins rather than ornamental jewellery. According to Goutham Badera, proprietor of Panchkesari Badera Jewellers, buyers are increasingly betting on further price appreciation.
“Customers are expecting prices to continue rising and reach record heights like never before,” he said, adding that investment buying has become a major driver of sales. With three outlets across the city, Badera said he has increased silver stock not only to meet demand but also to stay competitive amid a growing number of silver-only stores.
Industry insiders note that the trend mirrors investor behaviour typically associated with gold during bullish phases, indicating a shift in perception of silver as a long-term asset.
Gold prices push buyers towards silver
According to Srinivas R, secretary of the Jewellers’ Association Bengaluru, the expansion is largely confined to silver jewellery outlets rather than stores dealing in traditional silver articles or puja items.
“With gold prices nearing ₹15,000 per gram, many customers who are priced out of gold are turning to silver, even though silver itself is booming,” he said.
A proprietor of a newly opened silver store in Jayanagar said their business model is centred on silver coins. “We opened a second store in south Bengaluru in October last year because demand was clearly visible. Customers are buying silver now with the intention of selling it when prices peak,” the proprietor explained.
Shift in marketing and product strategy
Rising prices have forced silver jewellers to rethink their marketing and product offerings. Stores that once focused on elaborate jewellery sets are now catering to customers seeking affordable, everyday pieces.
Laabh Jewels in Wilson Garden, for instance, has shifted its focus to smaller items priced within a ₹5,000 budget. “A silver jewellery set that earlier cost around ₹1,500 is now priced at ₹10,000 or more,” said Harsh Jain, the store’s owner. “We are concentrating on minimal, daily-wear pieces. Since it’s pure silver, customers are still comfortable spending around ₹5,000.”
Jewellers also point out that improvements in craftsmanship have played a role in boosting demand. Designs traditionally associated with gold jewellery are now being replicated in silver, making the metal more attractive to aspirational buyers.
Silver puja items see declining demand
While jewellery and investment products are witnessing growth, demand for silver puja ware and gifting items has declined. Srinivas noted that there has been no corresponding increase in stores dealing exclusively in silver articles.
Barton’s on MG Road, a long-established retailer known for silver gifting and religious items, has reportedly seen a sharp drop in footfall over the past six months. Retailers attribute this to price sensitivity, as customers hesitate to spend large amounts on non-investment silver products.
Outlook remains bullish for 2026
Market experts believe the silver rally may continue into 2026, though uncertainty remains over when a price correction might occur. C Vinod Hayagriv, Managing Director of C Krishniah Chetty Group of Jewellers, said the market outlook remains bullish but volatile.
“We don’t know when there’s going to be a correction,” he said, pointing to strong global and domestic demand.
Hareesh V, Head of Commodity Research at Geojit Investments Ltd, highlighted structural supply issues as a key factor supporting prices. “Silver is in a deep supply deficit for the fifth consecutive year, with global inventories shrinking as industrial, manufacturing and investment demand continue to outpace output,” he said.
Analysts estimate that silver prices could spike by over 20 per cent in the coming months, fuelled by bullish global sentiment and sustained investor interest.
Conclusion
The record surge in silver prices is transforming buying behaviour and business strategies across the jewellery sector. As consumers seek alternatives to high-priced gold and investors look for returns amid global uncertainty, silver has emerged as both a lifestyle and investment metal. Whether the rally sustains or corrects, the current boom has firmly positioned silver at the centre of the city’s precious metals market.