Silver Price Historical Rate In India

For centuries, silver has been viewed as a dependable means of preserving wealth and value, much like gold. It has served as a form of currency in various cultures and continues to be trusted for its reliability today.

The selling price of silver is also influenced by the fluctuation of the Indian Rupee in comparison to the U.S. Dollar. If the Rupee weakens against the Dollar while international prices remain steady, the cost of silver in India will increase.

Table of Contents:

• ⇾ Historical Trend of Silver Rates in India 1981 to 2024
• ⇾ Ways to Invest in Silver in India
• ⇾ Factors Affecting Silver Prices in India
• ⇾ Domestic Factors
• ⇾ Global Factors
• ⇾ Additional Factors
• ⇾ Frequently Asked Questions

Historical Trend of Silver Rates in India 1981 to 2024

The following table illustrates the past trends in silver prices in India. It shows the average yearly prices of silver from 1981 to the present day.

From the above table, we understand that:

Silver prices in India have fluctuated significantly over the years, with an average price of ₹22997.61 per kilogram from 1981 to 2024 (YTD). The highest recorded price was ₹78600 in 2011, and the lowest was ₹2715 in 1981. These fluctuations are likely due to a combination of factors, including global economic conditions, industrial demand, and investor sentiment.

Investing in silver can be a good choice for those seeking to diversify their portfolio and potentially hedge against inflation. However, it's important to consider the inherent volatility of silver prices and conduct thorough research before making any investment decisions.

Ways to Invest in Silver in India

There are primarily three ways to invest in silver in India:

1. Physical Silver

• Silver Coins and Bars: These can be purchased from banks, jewelers, and authorized dealers. You should ensure the purity is certified.
• Silver Jewelry: While primarily for adornment, it can also be considered an investment. However, the making charges and design elements affect its value as an investment.

2. Silver Exchange Traded Funds (ETFs)

• Indirect Ownership: These funds invest in silver and offer a convenient way to invest in the metal without physical possession.
• Liquidity: ETFs are traded on stock exchanges, providing easy liquidity.

3. Silver Futures

• Commodity Market: This involves trading silver contracts on exchanges like MCX and NCDEX.
• High Risk: Futures trading is speculative and carries a high risk of loss. Suitable for experienced investors.

Factors Affecting Silver Prices in India

Silver prices in India, like globally, are influenced by a combination of domestic and international factors.

Domestic Factors Affecting Silver Price

• Demand and Supply: Local demand for silver, driven by jewelry, industrial applications, and investments, significantly impacts prices. Similarly, domestic supply, including mining and recycling, affects availability and costs.
• Festivals and Occasions: Religious and cultural events like weddings and festivals boost silver demand, leading to price fluctuations.
• Import Duties and Taxes: Government policies on import duties and taxes can influence silver prices.
• Rupee Value: The exchange rate of the Indian rupee against the US dollar affects the cost of imported silver.

Global Factors Affecting Silver Price

• Industrial Demand: Global industrial use of silver in electronics, solar panels, and other sectors impacts overall demand.
• Investment Demand: Silver is considered a safe-haven asset, and investor sentiment influences its price.
• Geopolitical Events: Global conflicts or economic uncertainties can create volatility in silver prices.
• Currency Fluctuations: The strength of the US dollar, as the primary currency for commodity trading, affects silver prices.
• Other Commodity Prices: The prices of other commodities, especially gold, often correlate with silver prices.

Additional Factors Affecting Silver Price

• Inflation: High inflation can push up silver prices as it is often seen as a hedge against inflation.
• Interest Rates: Interest rate changes can influence investment patterns and, consequently, silver demand.
• Speculation: Short-term price movements can be influenced by speculative trading.

Beside silver, you can aslo consider investing in commodities. Check more from the links below: