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Silver Rush Sparks Rethink
Good Morning. We all read the headlines about the silver price volatility, with India being the centre of it. Some of us might even have rushed to buy the metal. While the prices have settled, October’s volatility has made many industries that use silver for manufacturing, and silver miners to rethink their strategies.
Indian equity indices ended flat on Monday after a two-day losing streak. The BSE Sensex closed at 83,978.49, 39 points, or 0.05% higher. The NSE Nifty50 closed at 25,763.35, 41.25 points, or 0.16%, higher at 25,763.35.
In other news, the Enforcement Directorate is taking action on the Reliance Anil Dhirubhai Ambani Group. Meanwhile, a little reprieve for Vodafone Idea.
DECODE THE NEWS
India’s Silver Boom Prompts Strategy Changes Across Industry Chain
What?
Silver prices have been on a wild ride. In October alone, the metal saw 11% gains before a fall of 17% leaving traders surprised and producers scrambling to make more. To say the shiny metal has been volatile is an understatement.
Surging demand from investors for ETFs, the Diwali rush to buy the actual metal and the shortage of supply led to the volatility. As the world’s largest consumer of silverware and jewellery, and a growing hub for industrial use, India was a driver of the metal’s turbulence.
This up and down of prices has triggered more lasting changes. Even as the dust hopefully settles, participants across the value chain — from miners to recyclers and investors — are going back to the drawing board to rework strategies.
Why?
As silver prices settle from their mid-October peak, stakeholders are planning their bets. Business expansion, hedging, doubling down on production targets, and finding alternatives are all under consideration.
Take Anil Agarwal promoted Vedanta Group’s Hindustan Zinc (HZL), the only big silver producer in India, for example.
In FY25, the company produced 687 tonnes of silver (roughly 22 million ounces).
The recent silver rally has prompted the company to double down on production from the current 700 tonnes to 1,500 tonnes, company executives informed analysts this month.
HZL has diverted resources from other mines to Sindesar Khurd Mine in Rajasthan, known for its high silver content, and incentivised the contractors and workers, “so that we get the maximum advantage of silver till the time the prices are high”.
Event lenders are taking note. UCO Bank, in a recent call with analysts, indicated that it will explore opportunities with clients in commodity-linked manufacturing (including precious metals such as silver) but avoid those involved in speculative trades.
Meanwhile, manufacturers are feeling the squeeze.
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CORE NUMBER
5%
That’s the year-on-year growth in smartphone shipments in India in Q3 2025 — a sign of steady recovery and renewed consumer confidence, according to Counterpoint Research. Shipments increased even as the market shifted toward value-led growth, driven by festive sell-ins, financing offers, and trade-in deals. In Q1 2025, the shipments saw a 7% decline, but saw an 8% increase in Q2 2025 as per Counterpoint Research.
By The Numbers: The market’s overall value jumped 18% YoY, hitting its highest-ever quarterly figure, driven by a 13% rise in average selling prices and surging demand for premium devices. Apple led the value share at 28%, followed by Samsung at 23%, while Vivo topped volumes with 20%.
Outcome: Softer interest rates, improved liquidity, and aggressive promotions ahead of the festive season helped brands clear inventories and fuel upgrade-driven demand, especially in the premium segment.
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FROM THE PERIPHERY
Manufacturing Momentum Rises.
India’s manufacturing sector gathered pace in October as strong domestic demand offset a slowdown in exports, according to the HSBC India Manufacturing PMI by S&P Global. The index rose to 59.2, up from 57.7 in September, marking one of the sharpest expansions in five years.
How We Got Here: Output growth strengthened on the back of robust demand, new clients, and technology investments. However, export orders grew at their slowest pace in 10 months.
What’s Next? While input cost inflation eased to an eight-month low, firms continued to raise prices to offset higher freight and labour costs. Employment increased for the 20th straight month, though modestly. Business optimism dipped from a seven-month high but remained upbeat, with expectations buoyed by GST reforms and healthy domestic demand, said Pranjul Bhandari, chief India economist at HSBC.
ED Takes On Anil Ambani.
India’s Enforcement Directorate (ED) froze properties worth Rs 7,500 crore belonging to the Reliance Anil Dhirubhai Ambani Group in a money-laundering case linked to loans from YES Bank between 2017 and 2019, a government source told Reuters.
Fast Facts: Investigators said several ADAG firms, including Reliance Home Finance and Reliance Commercial Finance, allegedly diverted loan proceeds through shell companies and mutual funds. The agency found weak borrower profiles, missing documentation and misuse of funds under what it called a “well-planned” scheme.
The Lead: ADAG allegedly used the loans, totalling around $569 million, to pay bribes and evergreen loans tied to Reliance Communications and other affiliates. The seized properties include residential and commercial assets across Mumbai, Delhi and Chennai, including Anil Ambani’s family home. The group has not issued any statement yet.
Vodafone Idea’s AGR Dues.
The Supreme Court on Monday said the government can consider granting relief on all of Vodafone Idea’s adjusted gross revenue (AGR) dues, Reuters reported, citing CNBC-TV18. The move lifted shares of the debt-laden telecom operator by around 10% in afternoon trade.
Context: Last week, the court had said the government was free to revisit Vodafone Idea’s AGR dues, but it was unclear whether that applied only to the company’s additional dues of about Rs 9,500 crore ($1.08 billion) or the entire outstanding amount of nearly Rs 80,000 crore. Vodafone Idea has been seeking relief on both counts.
Setting: The company’s moratorium on spectrum and AGR payments ended in September, adding to its financial stress. Telecom firms, including Vodafone Idea, have long disputed the government’s method of calculating AGR, which determines the licence fees and other statutory payments owed to the government.
Canada Tightens Student Visas.
Canada’s tougher stance on international student visas has hit Indian applicants the most, Reuters reported, citing government data. Nearly 74% of Indian study permit applications were rejected in August 2025, more than double the 32% rejection rate a year earlier. Applications from India also plunged from 20,900 in August 2023 to just 4,515 this year, as Ottawa tightens visa rules for the second straight year.
The Shift: The stricter policy aims to curb temporary migration and fraudulent student visas. Canadian authorities found over 1,550 fake admission letters in 2023—mostly from India—and 14,000 potentially fraudulent documents last year. India’s embassy acknowledged the issue but said Indian students have long benefited Canadian universities.
Impact: Institutions like the University of Waterloo, Regina, and Saskatchewan have reported sharp drops in Indian enrolments. Experts say rising scrutiny and tougher immigration norms are changing how students view Canada.
PODCASTS
Will Indian Markets See A Strong November?
On Episode 717 of The Core Report, financial journalist Govindraj Ethiraj talks to Ajay Srivastava, Founder at the Global Trade Research Initiative (GTRI) as well as Ayaz Memon, Veteran Sports Journalist and Commentator.
Will Indian markets see a strong November?
Indian exporters are now feeling the full impact of the 50% tariffs in the US. The shocking details on how pharma and electronics exports are hit too.
After India’s stunning victory against South Africa, what next for the women’s cricket team.
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Where to Invest $100,000 According to Experts
Investors face a dilemma. Headlines everywhere say tariffs and AI hype are distorting public markets.
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And the Fed is lowering rates, potentially adding fuel to the fire.
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It’s what billionaires like Bezos, Gates, and the Rockefellers have used to diversify for decades.
Why?
Contemporary art prices have appreciated 11.2% annually on average
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