Top News

Silver Prices Hit Historic High Before Diwali: Demand Soars Across India

As the festive season intensifies, the Indian silver market has witnessed a remarkable surge. On Wednesday, October 15, 2025, the price of silver in Chennai surpassed the ₹2 lakh per kilogram mark for the first time. Within just one day, silver prices in the city jumped by a whopping ₹10,000 per kg, setting a new benchmark. Meanwhile, in Delhi, silver traded at around ₹1.9 lakh per kilogram, reflecting strong nationwide demand ahead of Dhanteras and Diwali.

Why Is Silver Becoming So Expensive?

The sharp rise in silver prices is being driven by multiple factors—both domestic and international. Globally, the demand for silver has surged due to its increasing use in industrial applications, particularly in electronics, solar panels, and electric vehicles. These industries account for nearly 60–70% of the total demand for silver worldwide.

This heightened industrial requirement, combined with festive buying in India, has pushed silver prices to record levels. Analysts say the metal’s dual role—as both a precious investment and an industrial commodity—makes it highly sensitive to global economic trends.

In addition, international silver prices have risen due to a weaker US dollar, geopolitical tensions, and expectations of interest rate cuts by the US Federal Reserve, all of which have boosted investor sentiment toward safe-haven assets like gold and silver.

Silver Prices Across 12 Major Indian Cities (as of October 15, 2025)

The difference in prices between Delhi and Chennai—about ₹17,000 per kilogram—illustrates regional variations driven by local demand and transportation costs. Chennai and Hyderabad currently record the highest silver prices in India.

Comparison with Previous Day’s Rates

Just a day earlier, on October 14, silver was trading around ₹1.85 lakh per kilogram in Delhi’s bullion market. Over the past five days, silver has gained nearly ₹6,000 per kilogram, climbing steadily from ₹1.79 lakh to ₹1.85 lakh and now touching ₹1.9 lakh and beyond.

Experts attribute this consistent rise to heavy festive buying, strong jewelry demand, and the weakening of the Indian rupee against the US dollar.

The gold market has mirrored this trend, with gold prices crossing ₹1.3 lakh per 10 grams for the first time. As investors and consumers continue to stock up for the festive and wedding season, both gold and silver prices have hit all-time highs.

Market Experts’ Outlook

According to market analysts, silver’s rally is unlikely to cool off soon. If the US dollar continues to weaken and domestic demand remains strong through Diwali and the upcoming wedding season, prices could climb even further.

On the international front, spot silver recently touched $53.54 per ounce, before slightly correcting to $51.36 per ounce. However, experts warn that the overall trend remains bullish, driven by long-term industrial demand and safe-haven investment flows.

Final Takeaway

The surge in silver prices to over ₹2 lakh per kilogram marks a historic moment for India’s precious metals market. Whether it’s festive buying, industrial demand, or global economic trends, every factor seems to be favoring silver’s climb. For investors and consumers alike, the coming weeks will be crucial in determining whether silver continues to glitter—or begins to stabilize after the festival rush.