Silver Prices Surge: White Metal Exceeds Rs 2 Lakh per Kg in Delhi Amid Global Rally
Silver prices in India have reached a historic milestone, surpassing the Rs 2 lakh-per-kilogram mark for the first time. This surge is attributed to robust demand in both domestic and international markets. On Wednesday, silver prices soared 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 suggest that this upward trend is likely to continue, driven by various market factors.
Record Highs in Silver Prices
The All India Sarafa Association reported that silver prices have hit an all-time high, reflecting a significant increase in demand. Dilip Parmar, a research analyst at HDFC Securities, noted that the rise in silver prices is closely linked to a similar trend in international markets. Since the beginning of the year, silver has seen a remarkable increase of Rs 1,15,300, or 127.40%, from Rs 90,500 per kg on January 1, 2025. This unprecedented growth highlights the metal’s increasing appeal among investors and collectors alike.
Gold Prices Also on the Rise
In addition to silver, gold prices have also experienced a slight increase, rising by Rs 600 to reach Rs 1,36,500 per 10 grams. This increase comes amid a broader trend of rising bullion prices, with gold becoming more attractive to investors. Renisha Chainani, head of research at Augmont, pointed out that the US dollar index has fallen to a two-month low, making dollar-priced bullion more affordable for international buyers. In the international market, 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
The international market dynamics are also playing a crucial role in the price surge. Spot silver in overseas trading has crossed the $66-per-ounce mark for the first time, jumping $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 driven by tight physical supply conditions and rising safe-haven demand. Additionally, strong inflows into silver-backed ETFs and expectations of US Federal Reserve rate cuts have further fueled the price increase.
Future Outlook for Silver and Gold
Looking ahead, analysts predict that investment demand from both retail and institutional investors will remain strong, potentially pushing prices even higher. Chainwala also highlighted concerns regarding China’s plans to restrict silver exports starting in 2026, which could exacerbate supply issues. With Chinese silver inventories already at their lowest levels in a decade, any export restrictions could worsen the physical squeeze, reinforcing the bullish outlook for silver prices. Overall, the current market conditions suggest that both silver and gold will continue to attract significant attention from investors in the near future.
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