Silver and Gold Prices Soar to Record Highs Amid Global Economic Uncertainty

Precious metals have reached unprecedented price levels in India, with silver nearing ₹1.8 lakh per kilogram and gold approaching ₹1.3 lakh per 10 grams. This surge is attributed to escalating geopolitical tensions, a weakening rupee, and a global supply crunch, prompting investors to flock to these traditional safe-haven assets.

Silver Prices Hit Record Highs:
On October 13, 2025, silver prices in India surged to an all-time high of ₹1.73 lakh per kilogram, marking a ₹11,000 increase in a single day. Including the 3% Goods and Services Tax (GST), the cost rose to ₹1,78,190 per kilogram. This spike is attributed to heightened investor demand and a significant supply shortage of silver. India, which imports over 80% of its silver, has seen a 42% drop in imports through August 2025, exacerbating the supply issue. Additionally, silver’s inclusion on a proposed U.S. critical minerals list has triggered greater shipments to the U.S., straining supplies further. Reuters

Gold Prices Approach ₹1.3 Lakh:
Gold prices have also reached new heights, with MCX gold futures for December delivery climbing to ₹1,23,977 per 10 grams, a 2.15% increase. This surge is driven by renewed U.S.-China trade tensions, a prolonged U.S. government shutdown, and growing global economic uncertainty, which have spurred demand for gold as a safe-haven investment. Free Press Journal

Impact on Indian Investors:
The rising prices of silver and gold have significant implications for Indian investors, especially in Tier 2 cities where traditional investments like gold jewelry are prevalent. While these assets offer a hedge against inflation and currency depreciation, the high prices may deter new investors and strain the budgets of those looking to purchase. Moreover, the increased cost of silver has led to a temporary suspension of new subscriptions to silver Exchange Traded Funds (ETFs), reflecting the challenges in acquiring physical silver. Reuters

Conclusion:
The record-breaking prices of silver and gold in India underscore the growing appeal of precious metals amid global economic uncertainties. While they continue to serve as reliable stores of value, the escalating costs present challenges for investors, particularly in smaller cities where affordability is a concern. As the global economic landscape remains volatile, the trajectory of precious metal prices will be closely monitored by investors seeking stability in turbulent times.