Silver price jumps Rs 6,000 in a day to Rs 1.23 lakh; gold above Rs 1 lakh

Silver prices surged by more than Rs 6,000 per kg in a day to touch Rs 1,23,500 per kg at the retail end on Monday due to uncertainty in US president Donald Trump's tariff policy which is having an impact on the global economies coupled with the weak rupee, trade executives said.

Even gold prices shot up by Rs 2703 per 10 gm on Monday, dampening the mood of the consumers ahead of the festive season, who would normally book gold and silver now for taking delivery during Navratri to Diwali. As of Monday, gold prices touched Rs 1,04,493 per 10 gm.

These rates of silver and gold are as per India Bullion & Jewellers Association.

Consumers have to pay a 3% goods and services tax over and above these prices of gold and silver.

"Silver crossing the Rs 1.23 lakh mark is a reflection of how global and local factors are shaping the market. With the rupee weakening and global uncertainties at play, silver is gaining strong momentum," said Darshan Desai, CEO of Aspect Bullion & Refinery, a gold trading and refining firm.

"For consumers, this means silver will continue to hold value not just as jewellery or investment, but also as a reliable store of wealth in uncertain times," he said.

Demand for safe havens of gold and silver has also increased as a result of Trump's attempt to remove Governor Lisa Cook, which has sparked worries about the loss of central bank authority. There are also prospects of a more relaxed monetary policy after Fed Chair Jerome Powell said circumstances "may warrant" interest rate decreases.

Avinash Gupta, vice chairman of All India Gem & Jewellery Domestic Council, said the volatility in prices of precious metals is keeping the demand muted.

"However, the Shradh period that will begin on September 7 and will continue till September 21, will see demand drop as consumers do not think this period is an auspicious one. The jewellers have restocked their inventory for the upcoming festive season," he said.

On August 26, the US government updated its critical minerals list adding six new minerals, including silver. This inclusion highlights America's dependence on imports, primarily from Mexico and Canada, and rising concerns over supply security which too is driving prices of silver, industry executives said.

"Investors believe demand for silver will outstrip supply in the days to come, and the latest priceline is a reflection of this. This is evident in the current buying patterns particularly through exchange traded funds," said Nilanjan Dey, partner of Wishlist Capital, an investment services firm.