The domestic silver market is on fire as prices have skyrocketed to ₹1,54,900 per kilogram, marking an increase of nearly ₹1,000 in a single day. Ahead of Diwali, the festival season demand and global market movements have pushed silver to record-breaking levels, surpassing expert predictions well before time.

Until recently, market analysts believed that silver would cross the ₹1.5 lakh mark by Diwali. However, the precious metal has already achieved this milestone a week earlier, prompting new forecasts that silver prices could reach ₹1.60 lakh per kg by the festival.

Why Silver Prices Are Rising Rapidly

Experts say the surge in silver prices isn’t limited to India—it’s a global phenomenon driven by multiple macroeconomic factors. The weakening of the US dollar, expectations of interest rate cuts, and fears of a potential US government shutdown have created economic uncertainty, pushing investors toward safe-haven assets like gold and silver.

In the international market, silver has gained nearly 15% in September, while gold rose by around 10%. This rally indicates that both metals are currently in a super bull phase.

“Silver has always been a dual-purpose metal — part investment, part industrial. Given the ongoing economic uncertainty, investors are finding comfort in metals, especially as inflation fears resurface,” said one market strategist.

Diwali 2025: A Golden and Silver Opportunity

With the festive season approaching, demand for precious metals traditionally rises in India. Diwali and the subsequent wedding season are considered the most auspicious time for purchasing gold and silver jewelry. This surge in consumer sentiment, combined with investment buying, is expected to keep prices elevated in the coming weeks.

Market experts now predict that gold prices could touch ₹1,22,000 per 10 grams by Diwali and may even rise to ₹1,25,000 per 10 grams by the end of 2025. Silver, on the other hand, is expected to move toward the ₹1.58–1.60 lakh per kg range, depending on global cues and domestic demand.

Silver’s Dual Strength: Investment + Industry

While investor interest remains a key factor, industrial demand is also playing a major role in silver’s price rally. Silver is a vital component in several high-growth sectors such as solar energy, electric vehicles (EVs), and green technologies.

With governments worldwide emphasizing renewable energy adoption, the demand for silver in solar panels and EV batteries has increased substantially. This industrial requirement, combined with investor inflows, is pushing silver prices to new highs.

Expert Advice for Investors

Financial experts recommend a “buy on dips” approach for both gold and silver. According to commodity analysts, investors should avoid short-selling precious metals in the current environment, as the rally is expected to continue at least until early 2026.

“Silver has strong support near ₹1.50 lakh and resistance around ₹1.60 lakh. If it sustains above ₹1.55 lakh this week, we may see a fresh breakout toward ₹1.60 lakh or even higher during Diwali,” said a senior commodities analyst.

Retail investors are also advised to consider systematic investment options such as silver ETFs, digital silver, or silver bonds, rather than physical bullion, to avoid storage and purity concerns.

Domestic vs Global Market Trends

In the global market, silver prices are being closely tracked on the COMEX exchange, where they have been hovering around $33–$34 per ounce, the highest in nearly two years. The weakening US dollar index and reduced bond yields have added further momentum to the uptrend.

India’s Multi Commodity Exchange (MCX) mirrors these trends, where silver futures for December delivery have seen strong buying interest from traders and institutional investors alike.

The Bottom Line

With Diwali just days away, silver prices have already broken all previous records, reaching ₹1.54 lakh per kilogram in the domestic market. As experts predict a possible move toward ₹1.60 lakh per kg, the white metal continues to shine brighter than ever.

Whether it’s festive buying, industrial demand, or global economic shifts — all indicators point to one direction: silver’s rally is far from over.