All that glitters is now silver

Srinagar, Jan 21: It is silverís golden moment.

The white metal is stealing the sheen in Kashmir as gold is losing its glitter amid soaring prices.

A fundamental shift is underway in the Valleyís precious metals market as record-high gold prices drive investors toward silver, transforming what was once merely a ceremonial metal into a serious investment option.

Silver prices continued their blistering jump for the ninth consecutive day and hit a fresh record in the local bullion market.

The white metal skyrocketed by Rs 11,300 to Rs 3,34,300 per kg, inclusive of all taxes, on Wednesday.

The metal closed Rs 20,400 higher at Rs 3,23,000 per kg in the previous market session.

Meanwhile, the MCX gold price opened higher at Rs 1.52 lakh for 10 gm, compared to Rs 1.51 lakh from the prior session.

The precious metal reached a new all-time high of Rs 1.58 lakh per 10 gm on Wednesday.

Traders said the metal remained resilient on the back of persistent industrial off-take, shrugging off weak global trends.

Just a few years ago, silver in Kashmir was rarely a topic of conversation around savings or investment.

Its use was largely restricted to traditional wedding utensils, anklets, and ceremonial gifts, whilst gold remained the unquestioned store of value for households across the Valley.

ìIn Kashmir, gold was always the backbone of household savings. Silver was never considered for investment,î said Bashir Ahmad, a bullion dealer from Srinagarís Saraf Bazar area. ìBut over the last 1 to 2 years, the mindset has changed. With gold becoming unaffordable, people are now seriously looking at silver to protect their savings.î

The shift has been gradual but unmistakable.

Demand is increasingly tilted towards silver coins, bars, and small-weight investment products, moving away from traditional utensils and ornaments.

ìWe hardly sold silver bars 5 years ago,î said a jeweller in Lal Chowk. ìNow, customers walk in asking specifically for coins and bars of 50 gm or 100 gm. Some even come every month to buy small quantities, the way people once bought gold.î The investment avenue is also expanding beyond physical purchases. Aijaz Ahmad, a local investor, said he has been investing Rs 300 daily in silver exchange-traded funds (ETFs), reflecting growing awareness of modern investment instruments among Kashmiri investors.

The trend is especially visible amongst salaried employees, small traders, and young professionals, who say gold prices have moved far beyond their reach.

ìBuying even 10 gm of gold has become unrealistic,î said Adil Farooq. ìSilver allows me to invest in small amounts. A few years back, I would never have thought of silver as a long-term investment, but now it makes sense.î

Dealers across Kashmir have adapted quickly to the changing demand.

Several jewellers have begun offering customised silver investment options, including monthly purchase schemes and buy-back assurances, to attract cautious buyers.

ìPeople want flexibility and safety,î said a dealer in Srinagar downtown. ìSilver gives them that. It is liquid, easier to buy in small quantities and still holds value over time.î

Industry insiders also point to silverís growing industrial relevance as a factor supporting long-term prices.

Demand from sectors such as solar power, electronics, and electric vehicles has added a new dimension to silverís appeal, making it more than just a traditional precious metal.

ìUnlike earlier, silver today has strong industrial demand along with investment demand,î said a bullion trader in Baramulla. ìThat gives buyers more confidence that prices will remain firm in the long run.î

Whilst gold continues to dominate cultural preferences, particularly during weddings, its soaring price has forced families to scale down purchases or look for alternatives.

Many are now opting for silver items alongside minimal gold, a shift traders say was unthinkable a decade ago.

Internationally, spot gold and silver extended their decline for the second straight day, with prices dipping amid a stronger US dollar and fading geopolitical risk premium after reduced tensions in the Middle East. However, as global economic uncertainty, inflationary pressures, and geopolitical tensions continue to drive investors toward safer assets, silver is steadily carving out a new role in Kashmirís economy ñ moving beyond wedding traditions to become a key instrument of household savings and financial security.