Silver Shines Brighter Than Gold This Week
India’s bullion market witnessed a stunning surge in silver prices, climbing nearly ₹16,000 per kilogram in just one week. The sharp rally has surprised both retail buyers and seasoned investors. As of this weekend, silver is trading close to ₹1,60,000 per kg in several major cities, while gold continues its steady rise with smaller gains.
In Delhi, Ahmedabad, and Patna, traders reported that silver jumped between ₹15,000 and ₹16,000 in a matter of days. Several jewellery shops even paused taking bulk orders as demand skyrocketed and supply became tighter than usual.
A bullion dealer in Ahmedabad remarked, “We haven’t seen such a rise in years. Customers are coming in to book silver early, fearing another jump in prices next week.”
What’s Driving This Sudden Rally
The reasons behind this massive surge are both international and domestic. From global economic shifts to festive demand, several factors have come together to fuel this momentum.
1. Global Uncertainty and Safe Haven Buying
Investors around the world are increasingly moving their money from risky assets into safer options like precious metals. Silver, known for its dual industrial and investment appeal, has benefited immensely. Rising geopolitical tensions, trade worries, and inflation fears have created a perfect storm, pushing people toward tangible assets.
2. Expectation of Rate Cuts
There is a growing belief that the US Federal Reserve might soon reduce interest rates. Lower rates make non-interest assets like silver and gold more attractive, as investors seek returns through capital appreciation rather than yields. The anticipation of easier monetary policy has led to large inflows into commodity funds and ETFs tracking silver.
3. Supply Constraints and Rising Premiums
Global supply of silver remains limited, especially in major trading hubs such as London. Reports suggest that inventory levels of physical silver available for immediate delivery are near multi-year lows. This shortage has resulted in hefty premiums, forcing Indian dealers to pay more to secure shipments. The tighter supply chain has translated into higher local prices.
4. Festive Season Demand in India
Domestically, the timing of this rally aligns with the festive season when jewellery and investment purchases typically rise. From Navratri to Diwali, demand for gold and silver traditionally peaks. Retail buyers often see silver as a more affordable metal to gift or invest in. As a result, wholesalers are stocking up to meet festive demand, which has further inflated prices.
Voices from the Market
In Mumbai’s Zaveri Bazaar, traders describe the situation as “chaotic but exciting.”
A shop owner said, “Every day, the price changes by thousands. We get calls from customers asking whether to buy today or wait for tomorrow. Nobody wants to miss the rally.”
Meanwhile, in Patna, investors are treating silver as an asset that could offer quick short-term gains. A local investor shared, “I bought silver bars at ₹1,45,000 per kg just last week. Today, it’s around ₹1,61,000. I’ve never seen such fast appreciation.”
However, not everyone is celebrating. Some small jewellers worry that if prices stay this high, consumer demand might drop after Diwali. “When prices go up this fast, customers hesitate. They start postponing purchases,” one Jaipur-based trader noted.
Why Analysts Are Cautious
Experts warn that the same speed with which silver has risen could reverse just as quickly. A few commodity analysts believe the rally is being driven by speculative trading rather than pure fundamentals.
According to Delhi-based analyst Karan Mehta, “While global demand and rate expectations support higher prices, the current pace looks unsustainable. Once traders start booking profits, we could see a short-term correction of ₹5,000 to ₹8,000 per kg.”
He added that India’s recent restrictions on silver imports until March 2026 could also contribute to temporary volatility. These controls were introduced to manage import bills and stabilize domestic markets, but they may reduce liquidity in the short run.
Global and Domestic Context
The rally isn’t limited to India. On the international stage, silver has touched its highest levels in over four decades. Globally, the metal’s performance has outpaced gold in percentage terms this year, thanks to a combination of industrial demand from green energy sectors and renewed investor confidence.
Within India, exchange-traded funds linked to silver have seen a record surge in inflows. According to AMFI data, nearly 70 percent of recent passive mutual fund inflows came from gold and silver ETFs. Even large asset management companies have temporarily paused new silver ETF investments due to strong demand and limited supply.
Should You Invest Now
For investors, this moment feels tempting. Prices are rising fast, and the headlines are encouraging. Yet, financial advisors urge caution.
Silver, unlike gold, can be more volatile because of its industrial linkages. The same factors that push it higher — like global uncertainty or supply issues — can drag it down when sentiment changes. Short-term traders might find opportunities, but long-term investors are advised to stagger purchases rather than buying in one go.
An expert from a Mumbai brokerage said, “If you’re planning to invest, start small. Wait for a pullback and buy in parts. Don’t chase the rally blindly.”
What Lies Ahead
Over the next few weeks, all eyes will be on the Federal Reserve’s policy signals and India’s festive consumption data. If global central banks hint at softer interest rates and physical demand continues strong, silver might cross ₹1,65,000 or even ₹1,70,000 per kg.
However, a sudden shift in market sentiment, policy tightening, or easing demand could bring prices back toward the ₹1,35,000–₹1,40,000 range.
For now, silver remains the star performer in India’s commodities market, outshining even gold. Whether this shine sustains or fades will depend on how global markets balance between greed and caution in the coming months.