India has embarked on an unprecedented silver accumulation spree, importing a staggering $5.9 billion worth of silver in just four months. This represents a 400% surge from Q4 2024 and stands 64% above the previous record set in 2022. For context, between 2013 and 2019, India's average annual silver imports were approximately $1.5 billion, making the recent figures nearly four times that amount in a fraction of the time.
The demand is driven by a powerful trifecta: traditional jewelry buyers, physical bar investors seeking a hedge against inflation and currency debasement, and heavy industrial usage in sectors like electronics, EV components, and notably, solar panels. India's aggressive push toward renewable energy, particularly domestic solar production, is creating a structural, strategic demand for silver as a critical industrial input.
The buying frenzy is reverberating through India's financial markets. The Nifty Metal Index, which tracks mining and metals companies, is having its best opening quarter since 2018. More significantly, the ratio of the Nifty Metal Index to the broader Nifty 50 has reached its highest point in 11 years, indicating a massive capital rotation into hard assets and commodity producers.
Globally, spot silver prices have responded, jumping 5% to $94.41 per ounce and hitting an all-time high of $94.61. Prices have climbed more than 32% since January. Despite the record prices, physical silver in India began trading at a discount of ₹10,000 per kilogram. "There is a ₹10,000 per kilo (kg) discount for bars prevailing in the physical market here," confirmed Surendra Mehta, National Secretary of the India Bullion and Jewellers Association (IBJA).
The rally is evident across financial instruments. MCX silver futures surged 5.5% to ₹3.03 lakh per kg. The Nippon India Silver ETF soared 5.66% to ₹284.70 per gram, boasting a year-to-date return of 32.45% and a staggering 225% return over the past year. ETF assets have ballooned from ₹15,339.21 crore in March 2025 to ₹72,907.44 crore by December 2025, according to Kotak Mutual Fund.
The profits are also materializing in corporate earnings. Hindustan Zinc, which controls about three-fourths of India's zinc market, posted a 46.2% jump in Q3 profit to ₹39.16 billion ($430.6 million), with revenue up 27.5% and both mined and refined production hitting record highs for the quarter.
Analysts view this as a clear signal of a deeper macroeconomic shift. India's actions, combined with the extreme outperformance of metal stocks, indicate capital is moving decisively back into real, hard assets. This trend is fueled by concerns over inflationary pressures, global trade fragmentation, geopolitical uncertainty, and the global energy transition, positioning silver uniquely as both a monetary metal and an industrial backbone.
