Global spot silver prices surged to around $50 per ounce in early October amid renewed safe-haven buying and heightened investor interest.
In India, the festive season ahead of Dhanteras and Diwali has amplified demand for silver coins, bars, jewellery, and idols, with imports nearly doubling in September compared to last year.
Rahul Kalantri, VP Commodities at Mehta Equities, noted, “Silver witnessed sharp volatility, plunging in early trade before recovering amid profit booking in the dollar index and following fresh US tariffs on China. Heavy sell-offs in global equity markets also supported safe-haven demand.”
Axis MF Research highlights that a global supply-demand mismatch underpins the current rally. Global mine output is projected to peak only by 2026, while industrial demand is at record levels due to green energy technologies, solar photovoltaics, electric vehicles, electronics, 5G infrastructure, and semiconductors.
Even central banks, including Saudi Arabia, have started buying silver—a rare shift from gold-centric buying—further widening the supply gap.
Domestic exchange-traded funds (ETFs) and Funds of Funds (FoFs) have been particularly affected, with trading premiums ranging from 5–12% over converted international prices.
This reflects both constrained physical supply and strong investment inflows, especially in India, where ETF NAVs now incorporate the domestic premium.
Volatility and technical outlook
Silver has seen nine consecutive weeks of gains, though recent profit-taking indicates near-term caution.
Analysts see support for silver at $48.20–$48.70 per ounce and resistance at $50.35–$50.90 per ounce.
Investment perspective
While the current premium over global prices may expose investors to short-term NAV corrections, silver is regarded as a strategic allocation for medium- to long-term portfolios. Experts advise that investors seeking multi-year exposure need not be deterred by temporary price distortions.