Mumbai, September 1, 2025 — Silver prices in India surged to an all-time high of ₹1.24 lakh per kilogram, driven by a global rally in precious metals as investors sought safe-haven assets amid economic uncertainty and geopolitical tensions.
According to data from the Multi-Commodity Exchange (MCX), silver futures for September delivery jumped nearly 2% in morning trade, marking the highest-ever level recorded in domestic markets.
Global Factors Driving the Rally
Analysts attribute the surge to a combination of international and domestic triggers:
- Weak US Dollar: A softer dollar has made silver and gold more attractive for investors worldwide.
- Safe-Haven Demand: Growing geopolitical tensions in the Middle East and concerns over slowing global growth have boosted demand for precious metals.
- Industrial Demand: Silver’s dual role as a safe-haven asset and an essential component in renewable energy, electric vehicles, and electronics has strengthened its price rally.
Internationally, silver is trading above $34 per ounce, its highest in more than a decade, mirroring gold’s strong run in the commodities market.
Impact on the Indian Market
India, one of the world’s largest consumers of silver, has witnessed strong retail and wholesale buying, particularly ahead of the festive season. Jewellers and bullion traders report rising demand despite elevated prices, as buyers view silver as both an investment and a hedge against inflation.
“Silver has outperformed gold in recent months. With industrial demand staying firm, prices may continue to climb in the short term,” said Anuj Gupta, Head of Commodity Research at HDFC Securities.
What Investors Should Watch
Market experts advise caution, highlighting potential volatility in the near term. While silver’s long-term fundamentals remain strong, sharp price fluctuations are likely if global central banks signal shifts in monetary policy.
For retail investors, small systematic purchases or silver ETFs may be safer options than lump-sum buying at peak prices.
What It Means for Stakeholders
| Stakeholder | Implication |
|---|---|
| Investors | Larger input costs could strain the manufacturing and solar sectors. |
| Industrial Buyers | Larger input costs could strain the manufacturing and solar sectors. |
| Consumers/Jewellers | Demand may shift towards silver jewelry due to affordability relative to gold. |
| Policy/Regulators | Demand may shift towards silver jewellery due to affordability relative to gold. |
