India faces a silver shortage before Diwali 2025 as demand surges and imports drop. Learn why silver prices are climbing nationwide.

There is a silver shortage in India before Diwali, which is a big worry for both traders and consumers.

As the Diwali festival of 2025 approaches, India, the country that purchases the most silver, is experiencing an unexpected development: a significant silver shortage. What used to be a cheap metal is now a high-priced good that trades for almost 10% more than the world average.

Recent estimates say that India’s silver imports have decreased by more than 40% in the first eight months of 2025. This means that there isn’t much silver available in the country just when demand for it surges over the holidays. This scarcity might make silver coins, jewelry, and kitchenware less shiny for millions of Indians getting ready for Diwali.

📉 Why Silver Is Getting Harder to Find in India

1. Less imports

India gets around 80% of the silver it needs from places like the UK, Hong Kong, and Switzerland. In 2025, there was a big drop in the amount of imports, which is said to have dropped by 42%. This has caused a big supply problem. The issue has only become worse because of shipping delays, higher tariffs, and a downturn in global trade.

2. Limits on global mining

Silver is mostly made as a byproduct of mining other metals like copper, zinc, and lead, which is different from gold. Because these mining industries are producing less silver around the world, the supply of silver has naturally diminished, making it harder to find.

3. The demand for industrial goods is at an all-time high.

In addition to jewelry, silver is an important part of electronics, electric cars, and solar panels. The rise in renewable energy projects and technology production has caused industrial demand for silver to reach historic highs, taking supplies away from the jewelry and investment sectors.

4. Investor Frenzy and ETF Changes

Silver has done well in the past few years, drawing in both individual and institutional investors. The report does say, though, that numerous silver ETFs have stopped or slowed down their buying, which has made the market less liquid overall. In the meantime, Indian investors are racing to acquire real silver, hoping that prices will keep going higher. This puts even more strain on the already tight supply chain.

💎 Diwali Demand Starts a Buying Frenzy

People usually buy more gold and silver during Diwali, the celebration of lights and wealth. Silver is very good for prosperity and purity; it is used to manufacture coins, idols, utensils, and jewelry.

Jewellers in locations like Mumbai, Jaipur, and Delhi say that silver stocks are low this year and that they are filling orders at high prices. Some dealers even say that bulk sales may stop for a short time until new shipments come in after the holiday season.

People are already feeling the squeeze because prices and fees are going up. Some things cost 10–12% more than they did last year.

📈 Trends in Prices and the Market

Experts in the field say that silver prices are likely to stay high during the holiday season because there isn’t enough of it in the world and India is using more of it. Silver has been selling well on worldwide platforms, thanks to demand from both industry and investors.

Analysts also say that the Indian rupee’s ups and downs and the way import duties are set up could have an effect on local prices in the next several months. Some people think that if imports don’t return to normal, silver could reach new all-time highs by early 2026.

💬 What This Means for Buyers and Investors

The message is clear for regular buyers: silver is accessible, but it’s not cheap. If you want to buy coins or jewelry for Diwali, you should do so early because costs may go up even more in the days coming up to the celebration.

Experts say that investors should take a long-term view. Silver is still a good investment because it is becoming more important in industry, there aren’t many new mines opening, and countries like India and China keep buying it.

🌟 Conclusion: A Shiny Metal That Is Hard to Find

The silver shortage in India in 2025 shows how global trends, industrial use, and local customs can all come together to affect the market. The festival season promises happiness and wealth, but the silver market offers a different story: prices are going up, demand is rising, and there isn’t enough silver.

No matter if you’re a trader, investor, or holiday shopper, one thing is clear: silver is shinier than ever, but it costs more.

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