In an unprecedented twist for precious metal markets, silver has overtaken gold in price per unit weight in several Indian cities, sending shockwaves through the jewelry industry and investor circles. As of Saturday, silver was trading at ₹1,53,100 per kilogram in Chennai, while gold hovered around ₹1,14,890 per 10 grams nationwide.
This dramatic reversal is driven by a confluence of global and domestic factors. Internationally, silver surged to $45.76 per ounce — a 14-year high — outpacing gold’s 2.5% weekly gain. Analysts attribute silver’s meteoric rise to its dual role as both a precious and industrial metal, with demand fueled by the booming solar, electronics, and electric vehicle sectors.
Why Silver Is Outshining Gold:
- Industrial Demand: Silver’s use in green technologies has skyrocketed, making it a critical resource for solar panels and EV batteries.
- Global Uncertainty: Investors are flocking to safe-haven assets amid inflation fears and geopolitical tensions, boosting silver’s appeal.
- Retail Accessibility: Silver’s lower entry price compared to gold has attracted smaller investors, amplifying buying pressure.
- Supply Deficits: Ongoing shortages in silver production have tightened availability, pushing prices higher.
- Rupee Weakness: A depreciating Indian rupee has made imported silver more expensive, further inflating domestic rates.
Experts warn that silver’s volatility remains high, and while the upside is dramatic, price corrections could follow. “Silver’s rally is intense, but investors should tread carefully,” said Rahul Kalantri of Mehta Equities Ltd.
Impact on Jewelry Buyers:
Jewelry lovers may face sticker shock as silver ornaments, traditionally seen as affordable alternatives to gold, now command premium prices. Retailers are adjusting inventories and pricing strategies, while consumers are urged to verify BIS Hallmark certification and compare rates before purchasing.