MMTC-PAMP to launch silver recycling pilot as supply remain sluggish

India’s leading precious metals refiner MMTC-PAMP has planned to launch a pilot programme for silver recycling at its existing retail stores within the next three months, citing rising demand and the risk of supply-side constraints.

Managing Director and CEO Samit Guha has revealed that the objective for new recycling plant is for improving economics for recycling and limited expansion in global silver mine production despite strong consumption growth.

The MD warned that if current demand trends persist, silver markets could face shortages, making recycled metal increasingly important. He urged the government to promote silver recycling, noting that Indian households are estimated to hold about 25,000 tonnes of gold and nearly ten times that quantity of silver, representing a vast untapped domestic resource.

Government owned MMTC-PAMP currently operates 20 gold recycling stores, many of which can be adapted for silver processing. The company plans to double its store network over the next five years. The rollout will involve upgrading and recalibrating equipment, along with staff training. A pilot is expected to begin in Delhi within three to four months, requiring moderate investments in technology and improvements at recycling and assaying centres.

Alongside recycling, the company plans to expand its minting business, particularly in South and Eastern India. Minting capacity is set to increase from 2.4 million coins to 3.6 million coins. MMTC-PAMP is also strengthening its digital commerce operations by selling coins and bars through its website and major online marketplaces, while expanding its digital gold and silver offerings.

MMTC-PAMP is India’s only LBMA Accredited refinery. On prices, the company believes that silver and platinum have risen 130–140 per cent globally over the past year, compared with about a 75 per cent rise in gold. Domestic silver prices recently hit a record Rs 3,34,300 per kg. MMTC-PAMP, India’s only LBMA-accredited refinery for both gold and silver, imported about 40 tonnes of gold and 50 tonnes of silver in FY25, with silver imports rising sharply this year due to strong demand.