Nepal is facing a shortage of silver in the domestic market even as imports of the precious metal have increased significantly, with traders blaming extreme price volatility and a growing preference for bullion over jewelry.
Government data show that silver imports surged in the first six months of the current fiscal year amid record-high prices. Records from the Department of Customs (DoC) reveal that Nepal imported more than 1,270 kg of silver between mid-July 2025 and mid-January 2026, up from 1,103 kg during the same period last fiscal year.
In value terms, silver imports jumped to Rs 269.49 million in the review period, compared to just Rs 210,000 in the first half of FY 2024/25.
Bullion traders say the rise in imports is largely driven by soaring prices, but extreme volatility has discouraged active trading, leading to shortages in the local market. “Despite higher imports, many traders are reluctant to trade silver due to sharp price fluctuations, creating a supply crunch,” a trader said on condition of anonymity.
As gold prices crossed Rs 300,000 per tola, silver has also been hitting record highs almost daily. On Sunday alone, silver prices rose by Rs 290 per tola to reach an all-time high of Rs 6,480 per tola.
Over the past six months, silver prices have nearly tripled. According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), silver prices have increased by Rs 4,220 per tola since the end of FY 2024/25, when they stood at Rs 2,260 per tola. The association attributes the surge to rising global industrial demand and export restrictions imposed by China.
International prices have also climbed sharply. Indian media reported that silver crossed the USD 100-per-ounce mark for the first time, driven by safe-haven demand and global supply pressures.
Traders say domestic shortages have worsened as investors increasingly prefer raw silver bars over jewelry to capitalize on bullion trading. “Demand for silver bars far exceeds demand for silver jewelry at present,” the trader added.
DoC data also show a rise in silver jewelry imports. Nepal imported 42.91 kg of silver jewelry worth Rs 5.596 million in the first half of the current fiscal year, up from 4.35 kg worth Rs 664,000 in the same period last year.
