Silver Price: Before Diwali, silver prices continue to rise tremendously. Experts say that this pace is not going to stop yet. Because there is a huge shortage of silver in the market. The price of silver in the global market has reached near the all-time high of $53 per ounce. In India too, silver has reached above Rs 2 lakh per kg for the first time. According to experts, currently silver prices may rise by about 32%.
Huge shortage of silver and purchases by governments
In India too, silver prices are continuously increasing due to increasing demand and decreasing supply. According to Nitesh Jain of Purple Jewels, ‘Right now there is a huge shortage of silver in the market. This is not just because of Diwali. Central banks and governments are also buying. Also, the industry is booking now to secure its future prices. This is the reason why silver is going up and for now this trend will continue.
Jain said that despite reaching record levels, silver is still undervalued. According to him, ‘We have broken the all-time high and now it can go to $60 to $65 per ounce.’ According to Jain’s estimate, the silver rate may increase by about 23% from the current level.
Premium of ₹20,000 and long wait
Abhay Ranka of Navkar Sterling Silver also said that silver may soon reach $65-$70 an ounce. This means that silver prices are expected to rise by 32%. He said, ‘There may be a slight decline in between which will increase the panic, but after that the rally will be bigger.’
According to Ranka, there is a lot of pressure on the supply of silver in India. Buyers have to wait at least 15 days for delivery and have to pay a premium of ₹15,000 to ₹20,000 if they want immediate delivery.
How much will the price of silver increase in India?
Currently, silver is most expensive in Chennai in India. This silver rate has reached Rs 2.07 lakh per kg. At the same time, in other big markets including Delhi, silver is being sold for around Rs 1.90 lakh per kg. If silver prices rise by 23% as per Nitish’s estimate, it will become Rs 2.54 lakh per kg in Chennai. At the same time, with an increase of 32%, silver will reach Rs 2.73 lakh per kg.
Now let us compare it with Delhi and other markets, where silver is currently being sold at Rs 1.90 lakh per kg. If there is a 23% increase, the price here will reach Rs 2.33 lakh per kg. At the same time, with an increase of 32%, the new price will be Rs 2.51 lakh per kg.
India dependent on silver imports
Nitish Jain said that silver coming from Dubai and London is being sold at a premium of $2 to $4 per ounce. But the metal booked for India has not reached yet. He said, ‘Very little silver is mined in India. We are completely dependent on imports. The demand is very high due to Diwali, but raw material is not available for manufacturing.
Demand for gold also increased
The demand for gold is also on the rise at this time, although the supply situation is a little better. Sayyam Mehra of Unique Chains said, “Jewelers have been building stocks for the last few months, and they are benefiting from rising prices. Both light and heavy jewelery are being purchased at a rapid pace as customers feel that the rates will increase further.
Mehra said that the trend of exchanging old gold for new has also increased rapidly. He said, ‘Now about 17-20% of the total purchases are from old jewellery, whereas earlier it was only 7-10%. Due to the recent rate hike, people are getting their old jewelery re-made.
Rally continues in both gold and silver
According to Mehra, 22 carat gold is still the most popular, but in some places the demand for 18 carat jewelery is increasing. Demand for 9 carat jewelery may also increase in the coming months. According to Mehra, the price of gold may go from ₹1,32,000 to ₹1,33,000 by November. It may reach ₹1,50,000 in the first half of next year.
This rally in both gold and silver has come due to global uncertainties, US-China trade tensions, increasing interest from investors and expectations of a possible rate cut by the US Federal Reserve. Silver has outperformed gold in India in 2025. While gold has gained 58%, silver has gained 85% so far. This shows how strong the demand for the white metal is ahead of the festive season.
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