Image Source: Pixabay

The gold and silver prices finished the week on a positive note, with the gold futures up $24 to $3,330, while silver rose to $32.93.

Here you can see silver's 32 cent gain on Friday.

Yesterday we talked about the US retail silver market, and especially if you’ve been wondering why the silver price seems rather muted compared to what we've seen in gold, I highly recommend reviewing that one.

I also mentioned how US retail is a more dominant presence in the silver investment market than most people realize. Although in second place is India, and a recent Metals Focus report had some interesting observations about the Indian silver market from their time at the India Silver Conference in Udaipur.

‘Local silver prices have risen by over 13% ytd to around Rs.100,000/kg, a key psychological level for many consumers. Due to this sharp increase and ongoing price volatility, consumers are holding back from making purchases.

This has resulted in lower store footfalls and an overall decline in silver jewelry and silverware demand in the first few months of this year. For 2025, we therefore forecast a decline of 15% y/y in jewelry demand and a steeper 22% drop for silverware.’

This certainly makes sense, and sounds right given India's reputation as being a price sensitive buyer.

Although on the other hand, I did recently hear an Indian commentator mention how with gold setting all-time record highs, some gold buyers in India have been turning to silver.

Next, Metals Focus highlighted some of the challenges in the Indian gold and silver market in terms of verifying authenticity of product.

‘A significant portion of India’s silver market remains largely unorganized, characterized by inconsistent purity standards and informal trade practices, such as selling jewelry with misleading purity claims or undervaluing items during buyback transactions.

Unlike gold, silver has historically seen limited regulatory oversight in India. However, growing consumer awareness is gradually pushing the sector towards greater transparency.

The Bureau of Indian Standards (BIS) has already introduced silver hallmarking, but adoption remains limited particularly outside metro cities. Unlike gold, hallmarking silver is still not mandatory. To provide some context, the number of silver jewelers registered with the BIS stands at only 17,800 compared to 183,000 for gold.

The Indian hallmarking standards recognize only six grades of silver purity: 990, 970, 925, 900, 835, and 800. However, in practice, particularly in smaller towns and rural markets, the silver purity can be significantly lower, on occasion touching 400.

Adding to the problem, low-purity items are often sold as being higher purity.

And here was an interesting comment about how some of the participants at the conference felt there was a greater need for some sort of silver industry spokesperson or group in India.

‘Another important theme that emerged last week was the need for an institutional body dedicated to the silver industry. While organizations like the All India Gem and Jewelry Domestic Council (GJC), the Gem and Jewelry Export Promotion Council (GJEPC), and the India Bullion and Jewellers Association (IBJA) have each supported silver-related initiatives, their focus is often on the gold and diamond industry.

Such a body could help promote best practices across the Indian value chain and engage with government authorities on policy matters that impact the sector. It could also lead efforts in consumer awareness and training programmes. Additionally, a silver-focused institution could spearhead marketing strategies at the national level by driving initiatives to improve local silver demand, whether through product innovation or targeted promotions during festive seasons.’

Just interesting to see how the silver industry, even in India, a country with a long silver history, is still looking for ways to promote their product. So especially if you happen to be reading this column in India, and you enjoy studying and talking about silver, sounds like there's a great opportunity out there for someone.

I'm also continuing to look forward to seeing the details of the United States-India trade deal, especially after the Hindustan Times reported that discussions were underway around the United States sending gold and silver to balance out the trade deficit.

All in all though, it was a good week for the gold and silver prices.

Here’s the 1-week chart, and you can see how the gold price looks relative to the close of trading last Friday.

And here is silver’s 1-week chart.

So hopefully you enjoyed another week of higher gold and silver prices, and you’re getting set to wish your mom a happy Mother’s Day on Sunday!

Make sure to give her a call and say hello. And then you can always go back to looking at the gold and silver prices later in the evening once the markets open in the Far East.

But do have a great Mother’s Day weekend, and I'll see you here again on Monday.

More By This Author: