KATHMANDU, Jan 26: Nepal is facing a shortage of silver in the domestic market even as imports of the precious metal have increased sharply, with traders blaming price volatility and a rush for bullion over jewelry.
Government records show that silver imports surged sharply in the first six months of the current fiscal year amid soaring prices of the precious metal in the domestic market.
Records maintained by the Department of Customs (DoC) show that Nepal imported more than 1,270 kg of silver between mid-July 2025 and mid-January 2026. During the same period last fiscal year, imports stood at just 1,103 kg.
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In value terms, the country spent Rs 269.49 million on silver imports during the review period this year, compared to only Rs 210,000 in the first half of FY 2024/25.
Bullion traders say imports rose largely due to the sharp increase in silver prices in recent months. However, they added that high price volatility has discouraged many traders from actively trading silver, leading to shortages in the domestic market.
“Despite a significant rise in imports, many traders are reluctant to trade silver due to extreme price fluctuations, which has created a supply crunch,” a trader told Republica on condition of anonymity.
As gold prices crossed Rs 300,000 per tola (11.6638 grams), silver has also been hitting record highs in the Nepali market almost daily. On Sunday alone, silver prices jumped 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 in the domestic market. According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), silver has become dearer by Rs 4,220 per tola, rising from Rs 2,260 per tola at the close of FY 2024/25.
FENEGOSIDA has attributed the price surge to rising global industrial demand for silver and export restrictions imposed by China.
Meanwhile, international prices have also climbed sharply. According to The Economic Times, silver crossed the US $100-per-ounce mark for the first time on Friday. The Indian media outlet reported that the rise reflects growing demand for safe-haven assets and supply pressures in the global silver market.
Traders say the shortage in the domestic market has intensified as investors increasingly prefer raw silver over jewelry to capitalise on bullion trading.
“Demand for silver bars far outweighs demand for silver jewelry at the moment,” the trader added.
DoC data show that imports of silver jewelry also increased during the review period. Nepal spent Rs 5.596 million to import 42.91 kg of silver jewelry in the first half of the current fiscal year, up from Rs 664,000 spent on 4.35 kg of silver jewelry in the same period last year.
