Silver Tops ₹3 Lakh per kg for First Time in India: What’s Fueling the Surge

Silver prices in India surged to a historic high on Monday, crossing the ₹3 lakh per kilogram mark for the first time, underscoring the growing appeal of precious metals amid global uncertainty. The sharp rally in silver came alongside firm gold prices as investors increasingly moved toward safe-haven assets in response to trade tensions and economic risks.

According to domestic bullion rates, silver was priced at ₹3,01,120 per kg, registering a jump of ₹12,830 in a single session. This translates into a strong gain of about 4.45% in one day, marking a significant milestone for the metal in the Indian market. The surge reflects heightened investor demand at a time when global financial conditions remain volatile.

Gold prices, meanwhile, also held steady at elevated levels. The yellow metal was trading at ₹1,45,590 per 10 grams, up by ₹2,500 or roughly 1.75%. Gold has been on a consistent upward trajectory in recent sessions, supported by the same macroeconomic factors that are driving silver higher.

What’s driving the rally in silver and gold?
The primary factor behind the rise in both metals is increased safe-haven demand. Global markets have turned cautious following fresh tariff threats from the United States, which have reignited fears of a wider trade conflict and its potential impact on global growth. As uncertainty rises, investors typically reduce exposure to equities and other risk-heavy assets, shifting capital into precious metals.

Weakness in global stock markets and softness in the US dollar have further supported bullion prices. A weaker dollar makes commodities priced in dollars more attractive to investors using other currencies. In addition, expectations that US interest rates may ease in the coming months have enhanced the appeal of non-interest-bearing assets such as gold and silver.

Silver has outperformed gold in this phase due to its dual role. While it benefits from safe-haven buying like gold, it also enjoys strong industrial demand, particularly in sectors such as electronics, renewable energy, and manufacturing. This combination of investment and industrial use has amplified silver’s gains during periods of economic uncertainty.

Silver prices showed some variation across major Indian cities. The metal was quoted at ₹3,180 per 10 grams in southern markets such as Chennai, Hyderabad, and Kerala, while prices in cities like Mumbai, Delhi, Kolkata, Bengaluru, Pune, Vadodara, and Ahmedabad stood at around ₹3,050 per 10 grams.

Market participants note that the sharp rise may dampen fresh retail buying in the short term, as prices have become expensive for small investors. Gold, too, could see more cautious demand at current levels. However, silver’s move past the ₹3 lakh per kg threshold highlights strong investor conviction in precious metals during uncertain times.

Looking ahead, analysts believe that as long as global trade tensions persist and economic risks remain elevated, gold and silver prices are likely to stay firm. Both metals are expected to continue tracking global developments closely, with volatility driven by shifts in geopolitics, currency movements, and interest rate expectations.