As Diwali approaches, India’s precious metals market is witnessing a fascinating shift, a glittering face-off between gold and silver. With gold prices soaring to historic highs, silver, long viewed as the “affordable luxury”, is fast becoming the go-to choice for jewellery, décor, and gifting. The decision between the two metals this festive season may well reflect changing consumer sentiments shaped by price sensitivity, style preferences, and evolving notions of value.
The Indian jewellery market, dominated by gold, is projected to grow at a 5.2–6.3 per cent CAGR from 2025 to 2033, expanding from USD 90–91 billion in 2025 to USD 145–150 billion by 2033. According to Technavio, the industry’s growth rate between 2024 and 2029 is expected to stand at 5.9 per cent — a clear sign that despite shifting trends, the allure of precious metals remains undimmed.
Gold’s Timeless Pull And the Smarter Shopper
Suvankar Sen, CEO and MD, Senco Gold and Diamonds, observes how both metals continue to symbolise India’s festive spirit — gold for prosperity and silver for purity. “Gold and silver have always been two sides of India’s festive spirit – one symbolising prosperity, the other purity. This year, with gold prices touching new highs, consumers aren’t stepping back; they’re simply getting smarter. We’re seeing a clear shift toward lighter gold pieces, 9-carat jewellery, and creative blends with diamonds and gemstones that make every gram go further without losing the festive grandeur. The emotional connect with gold is timeless, but its expression is evolving.”
Even as consumers explore more affordable options, gold’s role remains pivotal. From lightweight ornaments to intricate 9-carat innovations, jewellers are ensuring the yellow metal stays within reach without losing its grandeur.
Silver’s Sparkling Moment
At the same time, Sen highlights silver’s resurgence. “Silver is having its moment in the spotlight. Once reserved for coins and pooja thalis, it’s now being reimagined as a modern gifting hero — from sleek jewellery and designer artefacts to décor pieces that blend tradition with contemporary design.”
Senco’s silver jewellery brand Gossip, launched in 2008, epitomises this transformation. Offering designs starting at just Rs 500, Gossip features dazzling American Diamonds, European-inspired motifs, and oxidised silver pieces — making luxury accessible to all.
“Younger buyers, in particular, are embracing silver as an accessible, meaningful, and fashion-forward choice for Diwali gifting,” Sen adds. “Silver has been growing in prices at a faster rate than gold and is increasingly viewed as a metal for both investment and industry.”
With gold prices soaring, silver has become the star of this Diwali season. “Shoppers are turning to trendy, affordable silver jewellery, décor, and gifting options, driving sales up by nearly 35 per cent. Jewellers are reimagining silver with CZ-studded, gold-plated, and temple-inspired designs that appeal to younger buyers. Silver is now stylish, meaningful, and accessible — making it this year’s favourite festive choice,” says Hemant Chavaan, VP, Marketing, Ecommerce & CSR, Silvostyle.
Phenomenal Returns, Steadfast Faith
The numbers speak for themselves. Premjit Sengupta, Consultant, Gem & Jewellery Sector, notes, “Gold as an asset class has given phenomenal returns in the last two years. From Rs 56,000 per 10 gm in Dhanteras 2023 to Rs 117,000 in 2025, it has been a meteoric and stellar rise. Interestingly, even after more than doubling in the last 24 months, gold is still attracting strong buying as Rs 150,000 and beyond is the target for 10 gm by early 2026. The long-term prospects look strong with the yellow metal set to touch USD 5,000 an ounce in the medium term.”
He adds,“Silver, on the other hand, has followed a similar trajectory like gold and has given an astounding return of almost 150 per cent in the last one and a half years. Both the precious metals seem to be moving in tandem.”
Silver: The Statement Metal
Vaibhav Saraf, Director, Aisshpra Gems and Jewels, underlines silver’s growing appeal. “As a leading jewellery retailer, we’re closely observing the evolving preferences of our customers this Diwali. With gold prices reaching historic highs, many buyers are naturally reassessing their options — and silver is emerging as a clear favourite for those seeking beauty, elegance, and value.”
Saraf believes silver’s versatility and design adaptability are driving its resurgence. “Consumers are not only drawn to its lower price point but also to the versatility it offers in design and fashion. From intricate necklaces and earrings to contemporary fusion pieces, silver proves it can be both traditional and trendy.”
However, he adds that gold’s timeless emotional value endures, particularly for bridal and long-term investment purposes, “This Diwali, silver is clearly shining brighter in the hearts of many. It’s not just a substitute — it’s a statement.”
Design Innovation And Modern Gifting
Mira Gulati, Principal Designer and Founder, Mirari, sees this trend reflected in design innovation. “As gold prices climb to new highs, silver and silver-plated artefacts are emerging as the metal of choice. It offers a unique blend of affordability and elegance, making it ideal for gifting and personal indulgence.”
Mirari’s latest festive collection includes handcrafted silver candle holders, frames, coasters, napkin rings, and high-demand silver coins — all positioned as keepsakes rather than mere products. “Silver has a softness and sheen that allows us to experiment with intricate detailing. Our collection reflects a modern, minimal sensibility while honouring tradition.”
Balancing Emotion And Investment
Colin Shah, MD, Kama Jewellery, remains confident in gold’s emotional power. “Although silver has soared high, capturing attention this festive season, gold is unlikely to lose its sheen. The yellow metal continues to have an emotional value that silver cannot beat. Indian consumers have adjusted to the rising prices by shifting to the 9k and 18k segments. Silver cannot completely replace gold but will coexist with strong demand.”
Silver’s Style And Substance
Bindu Sharma, Founder and Creative Director, Mavitrra, captures the emotional shift beautifully. “As Diwali is here, the glittering world of precious metals in India is witnessing a refreshing change. Gold has been the ultimate symbol of prosperity, but with prices soaring, buyers are rethinking what’s elegant, smart, and affordable. Silver shines brighter than ever!”
She adds, “Once considered affordable luxury, silver has transcended mere jewellery — from décor to fashion accessories. People are not just purchasing metal; they’re buying style, sentiment, and value. Gold and diamonds may still shine, but silver is stealing the show this Diwali — quietly, gracefully, and irresistibly.”
Cultural Worth Meets Conscious Celebration
Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA), believes both metals have strong cultural standing. “Gold continues to remain popular despite high prices, while silver is gaining momentum as shoppers seek affordable luxury and intention-based gifting. Consumers are aware of costs but still unwilling to compromise on economic and cultural worth.”
She notes that jewellers are creatively responding with lighter gold sets and flexible schemes to keep the metal accessible, even as silver finds its own cultural relevance.
Market Insight: Dual Strength, Diverse Demand
Renisha Chainani, Head of Research, Augmont, explains, “With gold prices at an all-time high, Indian shoppers are considering alternatives that offer beauty, value, and gifting potential. Silver, perceived as an affordable luxury, is witnessing higher demand, especially for coins, idols, décor, and jewellery among middle-income buyers.”
She highlights that artisans are reimagining silver with personalised, modern touches. “Filigree work, minimalistic designs, limited-edition coins, and curated gift boxes have elevated silver’s status as both collectable and investment.”
Adapting To The Times
CA Siddharth Sipani, CFO, Sky Gold and Diamonds, sums up the market sentiment. “While gold prices have indeed risen significantly, demand remains strong. Instead of a shift away from gold, shoppers are adapting their purchasing behaviour, choosing lightweight jewellery, varied karat options, and trendy designs that balance affordability with style. Women continue to view gold as both a fashion statement and a sound investment.”
The Festive Forecast
This Diwali, India’s love affair with gold continues, but silver is undeniably stealing the spotlight. While gold remains the metal of emotional legacy and investment security, silver embodies modern elegance, affordability, and design freedom. The result? A dual celebration, where gold glitters and silver shines, together reflecting India’s evolving sense of style, sentiment, and smart spending. |
