Silver Doubles from ₹1 Lakh to ₹2 Lakh in Just 9 Months; Took 14 Years to Rise from ₹50,000 to ₹1 Lakh
New Delhi (Economy India): In a historic milestone for the precious metals market, silver prices in India have crossed the ₹2 lakh per kilogram mark for the first time, reflecting a sharp acceleration in demand driven by industrial usage, global supply concerns, and rising investment interest.
According to data released by the India Bullion and Jewellers Association (IBJA), silver prices surged by ₹8,775 per kg on Tuesday, reaching ₹2,00,750 per kg, compared with ₹1,91,977 per kg in the previous session.
The rally underscores silver’s transformation from a traditional jewellery metal into a strategic industrial commodity, particularly in clean energy and advanced manufacturing.
Gold Also Rises, Trades Near Record High
Gold prices also moved higher on the day, with 24-carat gold rising by ₹936 to ₹1,32,713 per 10 grams. The yellow metal remains close to its all-time high of ₹1,33,442 per 10 grams, recorded on December 15.
Despite gold’s strong performance, silver has significantly outperformed gold in percentage terms this year.
Silver’s Unprecedented Speed: ₹1 Lakh to ₹2 Lakh in 9 Months
One of the most striking aspects of the current rally is the speed of silver’s price appreciation.
- March 18, 2025: Silver crossed ₹1 lakh per kg for the first time
- December 17, 2025: Silver crossed ₹2 lakh per kg
This means silver doubled in price in just nine months.
By contrast:
- It took 14 years for silver prices to rise from ₹50,000 to ₹1 lakh per kg, highlighting the extraordinary pace of the current bull run.
2025 So Far: Silver Far Ahead of Gold
In calendar year 2025:
- Gold prices have risen by ₹56,551 per 10 grams
- From ₹76,162 on December 31, 2024
- To ₹1,32,713 currently
- Silver prices have jumped by ₹1,14,733 per kg
- From ₹86,017 on December 31, 2024
- To ₹2,00,750 currently
This makes silver one of the best-performing commodities of the year.
What Is Driving the Sharp Rally in Silver?
Market experts point to four major factors behind silver’s explosive rise:
1. Industrial Demand Surge
Silver is increasingly used as a critical raw material in:
- Solar panels
- Electric vehicles (EVs)
- Electronics and semiconductors
- Medical equipment
With global focus on clean energy and electrification, silver demand has expanded far beyond jewellery.
2. Tariff-Related Global Supply Fears
Concerns over potential tariff actions by the US have prompted American companies to stockpile silver, tightening global supply and pushing prices higher.
3. Pre-emptive Buying by Manufacturers
Fearing supply disruptions, manufacturers across industries are buying aggressively in advance, creating a demand-supply imbalance that is expected to persist in the coming months.
4. Rising Investment Through Silver ETFs
Retail and institutional investors are increasingly allocating funds to silver ETFs, boosting investment demand alongside industrial usage.
Expert View: Could Silver Go Higher?
According to Ajay Kedia, Director, Kedia Advisory, the momentum in silver is far from over.
“Silver demand remains strong and is expected to stay elevated. Prices could reach ₹2.10 lakh per kg by the end of this year and potentially move towards ₹2.50 lakh per kg over the next one year,”
Kedia said.
Should Investors Buy Silver at These Levels?
Silver Jewellery Buyers
Experts believe buyers planning to purchase silver jewellery may proceed, as prices could rise further, making jewellery more expensive in the future.
Retail Investors
For investors:
- Silver ETFs are considered a suitable option
- Monthly SIP-based investments are recommended instead of lump-sum buying to manage volatility
Will the Government Change Import Duty or Tax?
Market participants currently do not expect any immediate changes in import duty or tax structures related to silver.
India: World’s Largest Silver Consumer
India remains the largest consumer of silver globally.
- Total silver consumption in 2024: ~7,700 tonnes
- Domestic availability: Only 10–20%
- Imports: Around 80% of total demand
Silver usage in India spans:
- Jewellery
- Industrial manufacturing
- Electronics
- Solar energy
- Electric vehicles
- Investment products
Structural Shift in Silver’s Role
Experts note that silver is undergoing a structural shift—from a precious metal to an indispensable industrial input, particularly in renewable energy and EV supply chains.
This dual role—as both an investment asset and industrial metal—makes silver more volatile but potentially more rewarding than gold.
A New Era for Silver
Silver’s surge past ₹2 lakh per kg marks a watershed moment in India’s commodity markets. With strong industrial demand, global supply pressures, and growing investor interest, silver has emerged as a standout performer in 2025.
While volatility remains a risk, analysts believe the metal’s fundamentals suggest that silver’s strategic importance in the global economy is only growing.
(Economy India)
