'Customers are opting silver instead of gold': Jewellery stores face high demand, keep Bengaluru buyers waiting

Bengaluru: With prices hitting record highs, jewellery stores in Bengaluru are limiting sales of silver bars and coins, and imposing wait times ranging up to months. 

Jewellers say the soaring prices are also prompting many buyers to opt for a mix of gold and silver as an investment strategy. Some are even selling their jewellery to cash in on the record rates, although such sales are typically considered "inauspicious" during the festive season. 

On Saturday, jewellery stores across the city reported slightly higher footfall due to Dhanteras but most customers looked to buy silver instead of gold. 

A manager at a Jos Alukkas store noted a shift in mindset. "Customers are opting to buy silver instead of gold. Many prefer to buy raw silver in the form of bars or coins rather than the typical jewellery. This trend reflects a shift in mindset, where purchases are increasingly seen as investment opportunities rather than purely cultural obligations." 

Due to a shortage of raw silver (bars or coins), branded stores have implemented a purchase limit per customer to manage their stock, the manager said. 

While wholesale and traditional vendors do not have such strict limitations, some are imposing wait times ranging from days to months. This delay is dependent on the amount of silver purchased and the availability of raw silver in relation to demand, said Srinivas R, Secretary of the Jewellers' Association Bangalore. 

The gap between the supply and demand for raw silver has widened because demand has increased significantly in recent years, while supply has remained relatively stable, rather than due to an extremely low margin of silver supply, he added. 

Srinivas also noted a surge in the sale of silver jewellery and maintained that the gap between supply and demand of raw silver has not stopped anyone from making purchases. 

"There is a long wait time between the purchase and delivery of raw silver or silver bars, due to the high demand," he told DH. "Despite this, people prefer waiting for the delivery of raw silver after booking or paying for it, as they know it is a good investment." 

He clarified that raw silver had a gap in supply, but silver ornaments are easily available and widely bought, he said. 

Srinivas further noted that shoppers were strategically mixing gold and silver purchases. "People are balancing sentiment with practicality. They want to celebrate, but also invest wisely," he said. 

Many buyers are choosing small gold coins and bars as investment assets, often preferring 1g 24 karat coins with a 2% to 4% surcharge and GST. 

Saumen Bhaumik, Managing Director of CaratLane, said that while soaring prices usually discourage buyers, there is now a tilt towards lightweight, versatile jewellery. "Customers prefer aesthetically appealing designs with lower karat options such as 9kt and 14kt. The emotional connection to design seems to outweigh price sensitivity,” he told this newspaper. 

Jewellery stores, especially in northern Bengaluru, have also seen a rise in customers selling old ornaments, reflecting a broader shift from emotional to investment-driven buying.