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  5. Silver skyrockets ₹8,500 to all-time high of ₹1.71 lakh/kg in Delhi, gold retreats from record high; what’s driving silver?

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Silver skyrockets ₹8,500 to all-time high of ₹1.71 lakh/kg in Delhi, gold retreats from record high; what’s driving silver?

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By Vani Dua

3 min read | Updated on October 10, 2025, 20:04 IST

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SUMMARY

The US-based Silver Institute recently projected a fifth straight annual supply deficit for the metal in 2025, signalling a deep structural tightness in the market.

silver prices, silver bull run, silver all time high

Silver Exchange Traded Funds (ETFs) surged between 6% and 9% on Thursday, October 9.

Silver prices made a remarkable single-day jump on Friday, October 10, rising by ₹8,500 to hit a new record of ₹1,71,500 per kg in Delhi on the back of persistent safe-haven inflows and a major supply deficit for the white metal in the global markets. Silver closed at ₹1,63,000 per kg on Thursday, according to the All India Sarafa Association. 

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The white metal has soared ₹17,500 per kg just in the past three consecutive sessions. On the last Diwali (October 31, 2024), silver prices were at around ₹94,500 per kg. This marks an increase of over 81% against the ₹1.71 lakh/kg mark touched on Friday. 

Silver futures for the December delivery were at their all-time high of ₹1,53,388 per kg on the Multi Commodity Exchange on Thursday, October 9. 

Silver Exchange Traded Funds (ETFs) have also been rising, surging between 6% and 9% on Thursday. 

Globally, spot silver jumped over 2% on Thursday to breach the crucial $50 per ounce mark for the first time, hitting ₹51 per ounce. On Friday, spot silver was trading near the ₹50.01 per ounce mark. 

What is driving silver?

Industrial demand: Silver’s industrial demand has seen a dramatic increase over the past few years, with exceptional demand from solar, EV and 5G sectors. The rising demand has led to a major supply deficit in the global market. 
Supply deficit: The industrial demand for silver has exploded in recent times, especially from China, highly influencing white metal prices, Tata Mutual Fund recently said in a report. There has been a silver supply deficit for 5 straight years now, which is a big boost for overall market sentiment, it added. The demand-supply mismatch has resulted in a big surge in silver prices in both domestic and international markets.
Geopolitical uncertainty: Silver thrives in uncertain situations, as investors shift to safer investments during rising geopolitical tensions. Silver prices rise especially when gold rallies, as both metals are known to attract firm demand in unstable situations. Trade war concerns, market fluctuations, delayed data releases due to the ongoing US government shutdown and an overall uncertain environment cause a surge in the demand and prices for the white metal. 

Gold prices

Gold prices (24K, 99.9% purity) retreated from their record highs on Friday, falling by ₹600 to ₹1,26,000 per 10 gram in Delhi. Globally, spot gold advanced 0.4% to $3,992.80 per ounce. 

As per analysts, rising expectations of a rate cut by the US Federal Reserve and dovish signals in the September meeting minutes released on Wednesday boosted bullion prices further. 

"The ongoing US government shutdown, now entering its second week, has added volatility by delaying key data releases. Alongside, geopolitical tensions and steady inflows into ETFs and central bank purchases continue to underpin long-term support for bullion," a PTI report quoted an expert as saying. 

The US-based Silver Institute recently projected a fifth straight annual supply deficit for the metal in 2025, signalling a deep structural tightness in the market.

Analysts believe that the combination of potential Fed rate cuts, fiscal uncertainty in the US and persistent supply shortages could keep silver's bullish momentum intact in the near term, unless global risk sentiment stabilises significantly, the PTI report said. 

With PTI inputs
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About The Author

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Vani Dua is a journalism graduate from LSR College, Delhi. At Upstox, she writes on personal finance, commodities, business and markets. She is an avid reader and loves to spend her time weaving stories in her head.

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