Managing Director and CEO Samit Guha remarked that the company is venturing into silver recycling due to more favorable economic conditions, while global mining production capacity does not indicate significant expansion amidst rising demand.
”If silver demand continues its current trajectory, we might face severe supply-side issues. Ultimately, recycled silver will need to assume a larger role in bridging this gap,” Guha told PTI during an interview.
He urged the government to promote silver recycling, highlighting that Indian households possess approximately 25,000 tonnes of gold and ten times that amount in silver.
MMTC-PAMP runs 20 gold recycling stores that can be modified to accommodate silver. The company intends to double its store count over the next five years.
”We will need to upgrade certain equipment at the stores and recalibrate it for processing silver. Training will also be necessary. We’ll start with a pilot in a few of our locations before expanding,” Guha stated.
The pilot is expected to be launched in Delhi in the next three to four months and will necessitate technology investments and upgraded equipment for recycling and assaying centers, although he noted these would not be major changes.
In addition to recycling, MMTC-PAMP aims to grow its minting business, especially in South and Eastern India, and increase minting capacity from 2.4 million coins to 3.6 million coins.
The company also seeks to enhance its digital commerce activities, selling coins and bars via its website and major platforms like Amazon and Flipkart, along with expanding its digital gold and silver offerings.
Regarding prices, Guha mentioned that both silver and platinum have surged by 130-140 percent globally over the past year, while gold has risen by about 75 percent. The white metal reached a record ₹3,34,300 per kg in the local bullion market on January 21.
”Silver has yielded nearly double the returns of gold over the past 12 months,” he stated, indicating that investors who missed the rise in gold are now considering silver as an attractive option due to its lower entry point.
”From an investment standpoint, silver is becoming the new gold,” Guha remarked, although he noted that gold remains the preferred choice for de-dollarization while silver continues to lead in industrial uses.
MMTC-PAMP primarily imports gold in dore form as a refiner, with historical gold-silver imports typically maintaining a 1:1 ratio. The company imported around 40 tonnes of gold and 50 tonnes of silver in the fiscal year 2024-25.
From April to December of the current fiscal year, imports totaled 36 tonnes of gold and 60 tonnes of silver, reflecting a significant demand for silver, Guha commented.
MMTC-PAMP operates India’s only LBMA-accredited refinery that meets both gold and silver good delivery standards.
