Precious metals refiner MMTC-PAMP is set to launch a silver recycling pilot within three months as rising demand raises concerns over supply constraints, the company’s CEO Samit Guha said.

Guha noted that global silver mine output shows little expansion despite increasing demand, making recycled silver crucial to bridging the gap. “Eventually, recycled silver will have to play a bigger role,” he said, urging government support for recycling initiatives, as Indian households reportedly hold around ten times more silver than gold.

MMTC-PAMP operates 20 gold recycling stores, which will be upgraded and recalibrated to handle silver. The pilot is likely to begin in Delhi, with equipment updates and staff training in place.

The company also plans to expand its minting capacity from 2.4 million to 3.6 million coins, particularly in South and Eastern India, and grow its digital sales of coins and bars through platforms like Amazon and Flipkart.

On the market, silver has surged 130-140% globally in the past year, nearly double gold’s 75% rise, reaching a record Rs 3,34,300 per kg locally on January 21. “Silver has become a new gold for investors,” Guha added, while industrial demand continues to drive the white metal.