Impure Silver Floods India: Refiners Demand Action

The Indian silver market is experiencing a concerning influx of impure silver bars and coins, a trend exacerbated by escalating silver prices. This situation has amplified worries about widespread counterfeiting and compromised quality standards among industry stakeholders. Precious metal refiners are now intensifying their appeals to the Bureau of Indian Standards (BIS) for the enforcement of mandatory hallmarking across all silver products.

Furthermore, calls for compulsory licensing for silver refiners are mounting to enhance oversight and tighten quality control. While mandatory hallmarking for silver is set for September 2025, compliance remains a challenge, with many jewelers yet to adopt the requirement. Studies reveal that a substantial amount of silver sold in retail markets does not meet required purity levels, often containing prohibited elements like nickel, cadmium, and lead due to inadequate refining of scrap silver.

India's annual silver consumption is approximately 7,000 tonnes, yet the infrastructure for quality testing is limited, with only 286 assaying and hallmarking centers. This starkly contrasts with gold's infrastructure, despite lower consumption. Commodity exchanges like MCX, BSE, and NSE are preparing to introduce quality-certified silver bars to standardize supply and bolster market trust, while awaiting a dedicated BIS licensing framework for silver refining.