Silver prices have surged to an unprecedented ₹1.64 lakh per kilogram in India, marking a dramatic upswing ahead of the Dhanteras and Diwali festivities. This rally has captured the attention of both investors and consumers, as silver outpaces gold and equities in year-to-date returns. The spike is driven by a combination of heightened festive demand, increased industrial consumption, and global supply constraints. With silver being a key component in electronics, solar panels, and electric vehicles, its industrial relevance has added structural pressure to prices. Additionally, geopolitical uncertainties and a weakening dollar have pushed investors toward safe-haven assets like silver.
Market sentiment remains divided. While some analysts warn of a potential correction after the festive season due to profit booking and easing demand, others maintain a bullish long-term outlook. They cite silver’s expanding role in green technologies and its limited global supply as reasons for sustained price strength. Retail buyers are already feeling the impact. A 10-gram silver coin now costs nearly ₹1,950, almost double the price from last year’s Dhanteras. This has led many consumers to explore digital silver and investment-grade bars as alternatives to traditional jewellery.
Despite short-term risks, silver’s long-term prospects appear promising. Investors are advised to tread carefully, especially during this peak season, and consider diversification strategies. Whether the rally will lose steam or continue its upward trajectory will depend on post-Diwali demand trends and global economic cues.
