What are silver stocks?
Silver stocks are shares of companies that mine silver, recover it while processing other metals or use it in products such as jewellery. Some companies earn money directly from selling the metal. Others earn from finished products.
Silver is used for more than jewellery and coins. It conducts electricity well, which makes it useful in solar panels and electronic devices. While people like us buy silver as an investment, manufacturers need it to make different products. Both contribute to demand for silver.
The companies behind these activities are not all alike. A silver producer may benefit from higher selling prices. A manufacturer, on the other hand, has to buy silver before using it in its products. Higher prices can make its products harder to sell.
Silver sector at a glance
India has a large market for silver used in jewellery, coins and industrial products. Yet we import most of the silver we use. This makes domestic prices sensitive to international prices, the rupee and import duties.
Industries also account for a large share of silver demand. Solar panels use silver to transmit electricity. Manufacturers of electronics need it for various components.
In India, many companies recover silver while mining lead, zinc, and copper. They produce silver as part of wider mining operations rather than run a mine focused only on silver. Hindustan Zinc is one example.
Government policies can also affect silver prices. In May 2026, the government increased import duty on silver from 6% to 15%. Because of this, silver grew more expensive and imports took a direct hit. Higher costs also affect jewellery manufacturers’ profits and force them to raise product prices.
As a potential investor, the important point to know is that silver prices, demand and company earnings don’t always move together. A producer may benefit from a price increase, while a retailer may struggle with higher inventory costs.
Overview of the top 5 silver stocks
These 5 companies have different links to silver. Their businesses are different, so their opportunities and risks also differ. Here’s a quick look at their fundamentals:
Hindustan Zinc
Hindustan Zinc produces zinc, lead and silver. It recovered 627 tonnes of silver in FY26, compared with 687 tonnes in the previous year. This was because its mines supplied less silver as it changed its mining sequence. Silver is therefore an important by-product of its wider metal business, rather than its only product. Its results can be affected by the output of all three: zinc, lead and silver.
Vedanta
Vedanta has businesses in zinc, aluminium, iron ore, oil and gas, and other natural resources. Its connection to silver comes mainly through its stake in Hindustan Zinc. This gives it exposure to silver, but the metal is only one part of a much larger business. For example, a change in aluminium prices or oil and gas performance can affect Vedanta even if silver prices are rising.
NMDC
NMDC is a government-owned company that mainly produces iron ore. Steelmakers use iron ore to make steel, so the company’s business depends on demand from the steel industry. Unlike Hindustan Zinc, NMDC doesn’t produce significant amounts of silver. Therefore, its performance is more closely linked to iron ore prices, production and steel demand.
Thangamayil Jewellery
Thangamayil Jewellery is a retailer based in Tamil Nadu. It sells gold jewellery, silver articles and other jewellery products through its retail network. Gold remains the bigger part of its business. Higher silver prices may lift the value of its silver inventory and sales, but they can also make products more expensive for customers.
Goldiam International
Goldian International creates diamond jewellery mostly for overseas buyers. As a result, its profits rely far more on export orders and diamond sales than on silver trading or mining. This makes it a less direct option if you want exposure specifically to silver. Export demand and changes in customer orders are also important to its performance.
How to pick the right silver stocks to invest?
Here are a few basic factors to check before you invest in silver stocks:
- Silver production: Look at annual output and whether it is rising or falling. When you’re considering mining companies, this point is important.
- Share of earnings: Check how much of the company’s revenue or profit comes from silver. A business that mainly earns from other metals may respond less to silver price changes.
- Product mix: For jewellery retailers, check how much they sell in silver compared with gold, diamonds and other products. This shows how important silver is to their business.
- Production costs: Compare the cost of producing silver with the price it receives. Higher selling prices don’t result in better profits if the costs also rise with it.
- Other commodities: Many large mining companies make most of their money from other materials like iron ore, zinc, or aluminium, with silver being just a small part. These other metals can impact their overall profits much more.
The bottom line
Silver stocks can let you invest in companies related to the precious metal, but the link isn't always direct. Before buying the share, check whether silver is a major part of the company’s business or only a small part of it.
If you mainly want exposure to the precious metal, you can also compare silver stocks with silver ETFs or mutual funds. The Millions app offers various options, including SIPs for regular investing. Make sure you understand the investment option and its risk level before deciding. A better approach is to start small and increase your investment later as you gain confidence and save more.
