Silver prices in India have achieved a historic milestone by surpassing the Rs 2 lakh-per-kilogram mark for the first time. This surge can be attributed to robust demand in both domestic and international markets. Recently, silver prices skyrocketed by Rs 7,300, reaching an unprecedented Rs 2,05,800 per kg, compared to the previous closing price of Rs 1,98,500 per kg. Analysts indicate that this upward trend is likely to persist, driven by various market factors.
Record Highs in Silver Prices
The All India Sarafa Association has confirmed that silver prices have reached an all-time high, reflecting a significant spike in demand. Dilip Parmar, a research analyst at HDFC Securities, remarked that the rise in silver prices is closely aligned with a similar trend observed in international markets. Since the start of the year, silver has seen an impressive increase of Rs 1,15,300, or 127.40%, from Rs 90,500 per kg on January 1, 2025. This remarkable growth underscores the metal’s increasing allure among investors and collectors.
Gold Prices Also on the Rise
Gold prices have also experienced a slight uptick, rising by Rs 600 to reach Rs 1,36,500 per 10 grams. This increase coincides with a broader trend of rising bullion prices, making gold more attractive to investors. Renisha Chainani, head of research at Augmont, noted that the US dollar index has dropped to a two-month low, rendering dollar-priced bullion more affordable for international buyers. In the international arena, spot gold climbed by $18.59, or 0.43%, to $4,321.06 per ounce, as traders await the upcoming US Consumer Price Index data.
Global Market Influences
International market dynamics are playing a vital role in the price surge. Spot silver in overseas trading has crossed the $66-per-ounce mark for the first time, increasing by $2.77, or 4.35%, to a new record of $66.52 per ounce. Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, explained that this remarkable rally is fueled by tight physical supply conditions and growing safe-haven demand. Additionally, strong inflows into silver-backed ETFs and expectations of US Federal Reserve rate cuts have further propelled the price increase.
Future Outlook for Silver and Gold
Looking forward, analysts predict that investment demand from both retail and institutional investors will remain robust, potentially driving prices even higher. Chainwala also highlighted concerns regarding China’s plans to restrict silver exports starting in 2026, which could aggravate supply issues. With Chinese silver inventories already at their lowest levels in a decade, any export restrictions could intensify the physical squeeze, enhancing the bullish outlook for silver prices. Overall, the current market conditions suggest that both silver and gold will continue to attract significant investor interest in the near future.
Digihunt is not a financial advisor and this is not investment advice.