Summary of this article
MMTC-PAMP to pilot silver recycling amid supply concerns
Rising silver demand outpaces mining, recycling seen crucial
Silver prices surge sharply; investor interest shifting from gold
Precious metals refiner MMTC-PAMP plans to start silver recycling at its existing stores on a pilot basis within three months as rising demand threatens to create serious supply-side constraints, the company's top executive said.
Managing Director and CEO Samit Guha said the company is entering silver recycling because the economics are now more favourable, while global mine production capacity shows no signs of significant expansion despite growing demand.
"If silver demand keeps going the way it is, we could have serious supply-side constraints. Eventually, recycled silver will have to play a bigger role to fill this gap," Guha told PTI in an interview.
He called on the government to encourage silver recycling, noting that Indian households hold an estimated 25,000 tonnes of gold and ten times that amount in silver.
MMTC-PAMP operates 20 stores for gold recycling that can be adapted to handle silver. The company plans to double its store count over the next five years.
"We need to upgrade some of our equipment at the stores and recalibrate it to handle silver as a metal. We need to do some training. We will start a pilot in a couple of our stores and then we will roll out," Guha said.
The pilot will be likely launched in Delhi within three to four months and will require technology investments and upgraded equipment at recycling and assaying centers, though nothing very significant, he added.
Beyond recycling, MMTC-PAMP plans to expand its minting business, particularly in South and Eastern India, and increase minting capacity from 2.4 million coins to 3.6 million coins.
The company also aims to grow its digital commerce operations, selling coins and bars through its website and major marketplaces like Amazon and Flipkart, as well as expanding its digital gold and silver offerings.
On prices, Guha noted that silver and platinum have risen 130-140 per cent globally over the past year, while gold has gained about 75 per cent. The white metal had hit a record Rs 3,34,300 per kg in the local bullion market on January 21.
"Silver is almost double the return of gold over the last 12 months," he said, adding that investors who missed the gold rally are now viewing silver as an opportunity given its lower entry point.
"From an investment point of view, silver has become a new gold," Guha said, though he noted gold remains preferred for de-dollarization and silver continues to dominate industrial applications.
MMTC-PAMP primarily imports gold in dore form as a refiner, with gold-silver imports historically in a 1:1 ratio. The company imported around 40 tonnes of gold and 50 tonnes of silver in fiscal 2024-25.
During April-December of the current fiscal year, imports totalled 36 tonnes of gold and 60 tonnes of silver, reflecting overwhelming silver demand, Guha said.
MMTC-PAMP operates India's only LBMA-accredited refinery for both gold and silver good delivery standards.
