Silver has quietly delivered one of the most dramatic price journeys in the Indian commodity market. From trading near ₹30,000 per kg to crossing the ₹1,00,000 mark, the metal has repeatedly returned to the spotlight.
Over the past 15 years, silver investment in India has seen increasing interest from retail investors. The story since 2010 is not just about rising prices, but about changing investor behaviour, evolving preferences, and silver’s role as both a hedge and an affordable alternative to gold.
Between 2010 and 2015, silver bar demand rose sharply from 24.8Moz (770 tonnes) to 103.2Moz (3,211 tonnes). This surge was driven by global economic uncertainty after the financial crisis, rising spot prices and a weak rupee, which encouraged investors to seek precious metals as a safe haven.
Silver also benefited from its lower price compared to gold, making it more accessible to retail investors. During the same period, silver coin demand increased steadily from 1Moz (30 tonnes) to 7.2Moz (224 tonnes), supported by cultural gifting trends and growing awareness of silver as a long-term investment.
After peaking in 2015, silver bar demand fell sharply, dropping to 29.5Moz (916 tonnes) in 2016. Domestic prices declined to the ₹30,000 per kg range and later fell to around ₹33,500 per kg during the COVID-19 shock in March 2020. Profit-taking, lower confidence and a shift towards equities and real estate weighed on demand.
While bar demand remained subdued, silver coin buying stayed relatively resilient. Smaller investors continued to accumulate silver, even as larger investors moved away from physical bars.
Silver prices crossed earlier highs in 2020, leading to temporary liquidations. However, prices later corrected to ₹51,850 per kg by September 2022, triggering bargain hunting. That year saw the highest combined bar and coin demand since 2015, supported by record bullion imports.
After bottoming out, prices surged again, touching ₹1,00,000 per kg in October 2024. Despite high prices, investor confidence remained firm, aided by a sharp cut in import duties in mid-2024, which briefly lowered domestic prices and encouraged fresh buying.
The journey from ₹30,000 to ₹1,00,000 per kg highlights silver’s role as both a volatile asset and a long-term store of value for Indian investors. Even during sharp corrections, steady coin demand shows that retail participation remains strong, especially during price dips and festive periods.
Read more: Top 3 Geopolitical Developments Across Regions and Their Role in Supporting Gold and Silver Prices.
Silver buying in India has matured over time, shaped by price cycles, policy changes and investor behaviour. While volatility remains, the long-term trend suggests that silver continues to hold an important place in retail portfolios, especially for investors seeking diversification beyond gold.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jan 21, 2026, 2:02 PM IST
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