Silver Prices Surge Globally, Yet Indian Market Faces ₹10,000 Discount Amid Cooling Demand

Overview Silver prices have soared to a record high of $93.22 per ounce in international markets, but the Indian market is facing a significant challenge. Here, silver is trading at a steep discount of ₹10,000 per kg, reflecting a slowdown in demand as prices reach historic levels.

Key Developments

• The Indian physical market is seeing silver priced at ₹292,628 per kg, which is ₹10,000 less than the landed cost of ₹302,628 per kg. This discount indicates a cooling demand among buyers, as noted by Surendra Mehta from the India Bullion and Jewellers Association (IBJA).
• Meanwhile, the most active silver futures contract on the MCX has risen by 5.5%, reaching ₹3.03 lakh per kg, following a 5.3% increase in international prices. This surge is attributed to ongoing tariff tensions between the US and NATO allies over Greenland’s sovereignty.
• Despite the international rally, demand in India has tempered significantly, with imports totaling 6,785 tonnes of silver through November 2025, highlighting a stark contrast between global and local market dynamics.

Business Impact The stark discount in the Indian market suggests that local buyers are hesitant to purchase silver at these elevated prices, which could impact sales for dealers and the overall market sentiment.

Market Context The Indian silver market is currently grappling with a disconnect from international trends, as local demand falters despite rising global prices. This situation could lead to further adjustments in pricing strategies among dealers.

Industry Context Historically, silver has been a popular investment in India, especially during festive seasons. However, the current price levels are causing buyers to rethink their strategies, which could have long-term implications for the bullion market.

Looking Ahead As the market adjusts, it’ll be interesting to see how dealers respond to the ongoing demand challenges and whether prices will stabilize or continue to fluctuate in the coming months.