As silver prices hit record highs, rumours of a government ‘ban’ are spreading online. But RBI’s decision points the other way, giving silver a bigger role in the financial system
Claims about the Centre scrapping silver have no basis. Silver is not a currency like cash notes; it is a commodity and an investment asset. While there are limits on personal holdings, there is no question of forced surrender. On the contrary, RBI’s policy is expected to push demand and prices higher.Silver is on a historic rally. As of January 16, prices touched around Rs 2.87 lakh per kg in India, jumping more than Rs 12,000 in a single day. A year ago, silver was near Rs 90,000 per kg, meaning prices have nearly tripled in just 12 months.Rising industrial demand is a major driver. Silver is critical for solar panels, electric vehicles and electronics. With schemes like Surya Ghar Yojana and rapid EV adoption, consumption is climbing. India’s silver demand reportedly rose 192% in a year, while global supply remains tight.Could prices crash suddenly in 2026? Experts say it is unlikely. Global estimates suggest silver could trade between $100 and $144 an ounce, while domestic prices may cross Rs 3 lakh per kg. A sharp fall would require multiple shocks such as a global recession or steep rate hikes, which do not appear imminent.If silver were ever abruptly cancelled, it would trigger panic, black markets and widespread losses. That is precisely why such a move is seen as unrealistic. Instead, the Centre is discussing measures like mandatory hallmarking, which would improve quality assurance and potentially boost prices further.In short, there is no reason to believe rumours about silver being scrapped. The metal is breaking records and gaining policy support. While silver looks attractive as an investment, experts still advise caution, commodity markets carry risks, and investors should rely only on official information.
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Social media is buzzing with rumours that the Centre may ‘abolish’ silver, sparking comparisons with the 2016 demonetisation. The chatter has grown louder as silver prices surge and investments rise. However, there is no official indication of any such move. In fact, the RBI has taken steps that strengthen, not weaken, silver’s status.
