Silver import restrictions and limited quotas in India will constrain supply and cap silver's rally in the near term, causing it to underperform gold.

"While gold imports rose by only 4.77% to $4.16 billion, silver imports dipped 66.1% to $171.68 million in July. Cumulatively during April-July 2026-27, gold imports grew by 32.41% to $15.17 billion, while silver imports declined 50.81% to $718.42 million."

"Silver import quotas available to Indian traders remain below typical seasonal demand, which could limit the amount of metal available in the domestic market. If the trade is not able to import as much, I think that should pressure the price in a sense or keep the rally capped."