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Silver Stays Above ₹1.23 Lakh Despite Market Jitters
Silver prices remained resilient during morning trading on September 4, even as broader precious metals saw declines following the government’s new GST reforms announcement. While gold dipped over 1%, silver held firm above ₹1.23 lakh per kilogram—a psychological support level that has proven steady through recent volatility.
According to data from the Indian Bullion Association (IBA) at 9:13 AM IST, silver (999 Fine) was priced at ₹1,23,670 per kg, reflecting only a marginal drop. On the Multi Commodity Exchange (MCX), December 5 contracts were trading at ₹1,23,881 per kg, down 1.58% from the previous close.
Experts say silver’s dip was largely in response to broader market correction and investor recalibration following Wednesday’s GST reform updates. However, the metal’s long-term uptrend and industrial demand are keeping prices stable compared to the steeper fall seen in gold.
Two Decades of Silver Growth: +668% Returns Since 2005
Over the past two decades, silver has emerged as a strong-performing asset. From ₹16,094 per kg in 2005 to consistently trading above ₹1,23,000 in 2025, the metal has appreciated by nearly 668.84%.
While gold typically garners more headlines, silver has delivered steady gains, particularly due to its dual appeal—as both a safe-haven asset and an industrial commodity. With growing demand from sectors like solar, electric vehicles, and electronics, analysts expect silver to remain a crucial player in the commodity markets.
“Silver’s long-term resilience comes from its unique position—part precious metal, part industrial necessity,” noted commodity analyst Meera Shankar. “This blend has protected it from deep corrections during macroeconomic shifts.”
Why Silver May Outshine Gold in the Long Run
While gold remains the traditional hedge during inflation and currency devaluation, silver offers higher upside potential in bull markets, thanks to its lower price point and stronger industrial utility.
According to year-to-date (YTD) performance, gold has climbed approximately 31% in 2025. Silver’s growth has been slightly more modest, but its base has remained solidly above the ₹1 lakh/kg mark—demonstrating consistent investor confidence.
Industry insiders believe silver could benefit disproportionately from India’s infrastructure push and global green energy trends. With the government incentivizing solar panel production and battery storage tech, demand for industrial silver is expected to grow steadily.
Price Drop Follows GST Reform Announcement
The latest slide in gold and silver prices came shortly after the Indian government announced new GST reforms aimed at boosting domestic consumption. Markets reacted quickly, anticipating increased liquidity and possible policy-driven shifts in consumer behavior.
MCX Gold October 3 contracts dropped 1.24%, falling to ₹1,05,861 per 10 grams, while 24-carat retail gold stood at ₹1,06,230 per 10 grams, as per IBA. However, silver’s relatively smaller drop indicates stronger undercurrents supporting the metal.
Silver Prices in Major Cities – September 4
Retail silver prices, as reported by local bullion dealers, varied slightly by city. Here are the approximate retail silver rates across key Indian metros (Silver 999 Fine, per kg):
- Delhi: ₹1,23,700
- Mumbai: ₹1,23,650
- Kolkata: ₹1,23,680
- Chennai: ₹1,23,600
- Hyderabad: ₹1,23,620
- Bengaluru: ₹1,23,640
Note: Retail prices may vary depending on jewellers’ premiums, making charges, taxes, and applicable GST. Buyers are advised to check final billing details before purchase.
Analysts continue to remain cautiously optimistic about silver’s outlook for the remainder of 2025. The metal’s strong historical performance, its link to green technology, and India’s rising industrial demand make it a metal to watch.
However, investors should remain aware of global interest rate trends, inflation reports, and commodity cycles. Any major geopolitical development or policy shift could create temporary volatility in silver markets.
