Silver Surges in India: Rupee Fall & Global Demand Boost
Silver prices in India hit a new high on 3 December 2025. On the Multi Commodity Exchange (MCX), silver futures climbed to around ₹1,84,727 per kilogram. At the same time, the Indian rupee weakened past the ₹90 per US dollar mark. These two factors, global demand and currency slide, pushed silver sharply higher. What does this trend mean for the metals market and those watching bullion prices?
Why Is Silver Rising?
The rupee’s fall made imported silver costlier in rupee terms. As the rupee slipped past 90 against the dollar, every dollar of the global silver price converted into a higher rupee amount, raising the landed cost of silver in India. This increase fed directly into domestic silver rates.
Internationally, silver has also gained. Global spot prices hovered around US$58.46 per ounce, near recent peaks, thanks to expectations of interest rate cuts, supply tightness, and strong industrial demand. These global trends, combined with currency weakness, contributed significantly to the local price surge.
Industrial demand has also picked up for silver. It is used in electronics, solar panels, medical devices, and other sectors. Rising demand in these areas, paired with limited supply, has given further impetus to silver prices.
How Does Silver Compare with Gold?
Gold also saw gains recently. Gold futures on the MCX traded around ₹1,30,766 per 10 grams after the rupee dip and global trends pushed prices higher. However, silver’s percentage jump outpaced gold’s. This makes sense because silver is more sensitive to global demand, industrial use, and rupee movements than gold.
Silver is not only highly demand-driven but also lacks the number of large-scale investors associated with gold, which makes its price more responsive. As a result, it tends to be more volatile, but it also offers greater upside potential when global demand strengthens, and currency conditions are favourable.
What To Watch Next: Risks and Signals to Monitor
The rupee will be one of the critical factors. Assuming the rupee gets stronger against the dollar, imported bullion will be cheaper in rupee terms, and that will drag the price of silver down, even as world prices stay constant.
The trends in global supply and demand are important as well. Any fall in industrial worldwide demand, such as in electronic or solar markets, might trim silver offtake and alleviate prices. Conversely, the market might also be pressured by higher supply from mines or heavy scrap silver entering the market.
Finally, interest-rate and macroeconomic signals globally will influence bullion demand. If interest rates in major economies stay high or rise, metals could face pressure because interest-bearing assets become attractive. But if rate cuts materialize, metals like silver may continue to benefit.
Given silver’s sharp rise to ₹1.84 lakh per kg amid rupee weakness and strong global demand, the question now is: will silver sustain its outperformance, or will currency recovery or supply-demand shifts reverse the trend?
References
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