New Delhi: Precious metals refiner MMTC-PAMP plans to launch silver recycling at its existing stores on a pilot basis within the next three to four months, as surging demand raises concerns over potential supply constraints.
MD and CEO Samit Guha said the company is entering silver recycling as the economics have turned favourable, while global mine production is not expanding in line with 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,” he said. Guha urged the government to promote silver recycling, noting that Indian households hold an estimated 25,000 tonnes of gold & nearly ten times that amount in silver. MMTC-PAMP currently operates 20 gold recycling stores that can be adapted for silver & plans to double its store network over next five years.
The pilot is likely to begin in Delhi and will involve equipment upgrades and staff training at select stores and assaying centres. Beyond recycling, the company plans to expand its minting business, especially in southern and eastern India, raising capacity from 2.4 million to 3.6 million coins. MMTC-PAMP is also scaling up digital commerce through its website and major online marketplaces, alongside expanding digital gold and silver offerings.
On prices, Guha said silver and platinum have risen 130–140 per cent globally over the past year, against a 75 per cent rise in gold. Silver recently hit a record Rs 3,34,300 per kg in the domestic market, emerging as an attractive investment alternative to gold. MMTC-PAMP operates India’s only LBMA-accredited refinery for both gold and silver.