Ahmedabad: Gujarat imported nearly 1,500 metric tonnes of silver in FY26, among the highest in recent years, signalling a shift in bullion consumption even as prices remain elevated, according to data by air cargo operators and bullion traders. Jewellers and bullion traders attribute the rise in imports to a mix of affordability, investment demand and rising industrial use. Silver price touched a record-high level of Rs 3.8 lakh per kg on Jan 29, 2026.Industry insiders point out that part of the surge can be traced to price movements earlier in the year. “In Jan, prices touched record-high levels. Gujarat, particularly its Free Trade Warehousing Zones (FTWZs), offers importers logistical convenience. Demurrage and vaulting charges are largely avoided, so suppliers prefer to stock here. Silver vaulting is otherwise very expensive,” said Haresh Acharya, director at the Indian Bullion and Jewellers Association (IBJA). “A robust industrial demand is underpinning consumption. Silver continues to find widespread use in solar panels, electrical components and electronics manufacturing, sectors that are witnessing sustained expansion. This dual demand profile, industrial and investment, has made silver less sensitive to price volatility compared to earlier cycles,” Acharya added.Beyond retail demand, silver’s growing appeal as an investment asset has also supported volumes. Market participants point out that silver is increasingly viewed as a high-growth alternative within the precious metals basket, with expectations of stronger upside than gold during bullish cycles. This has led to steady buying from investors despite elevated price levels. “The rise is being driven by a combination of affordability, investment demand and rising industrial use. With gold prices remaining elevated, a section of buyers, particularly in semi-urban and rural markets, has been gravitating towards silver as a more accessible store of value. There is a clear substitution effect at play. Consumers who would typically buy small-ticket gold are now opting for silver, both in jewellery and bars,” said Hemant Choksi, general secretary, Shree Manek Chowk Choksi Mahajan. Amid the rise in gold prices, even on muhurat days, the demand for 925 silver jewellery went up significantly, according to jewellers.
