Investors Fuel Silver's Record Rally, Not Jewellery or Industry

• Silver's record-breaking rally is overwhelmingly driven by investment demand, not traditional jewellery or industrial consumption.
• India imported approximately 7,000 tonnes of silver in 2025, reflecting strong investor interest through both paper and physical routes.
• Investment interest is broad-based, including steady inflows into silver ETFs and strong buying of large physical bars by high-net-worth individuals.
• Risks include industrial substitution (e.g., copper, nickel, solar sector) if silver prices climb too high, making it unsustainable.
• There's a need for stronger regulation and mandatory hallmarking in India's largely unorganised physical silver market to protect consumers.

Why It Matters: Silver's surge is investor-led, with future risks from substitution and a call for market regulation.