In India, gold and silver are more than just metals—they’re emotional assets, cultural staples, and critical investment tools. Over the past few years, prices of both gold and silver have witnessed a significant upward trajectory. The rising trend has caught the attention of investors, economists, and even common buyers.
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| gold and silver price rises in india what is the reason behind |
In this blog, we’ll provide a detailed comparison of gold and silver price trends in India from 2018 to 2025, followed by an in-depth analysis of the factors causing this price rise. Whether you’re an investor or just curious, this blog will provide you with a clear understanding of what’s driving these changes.
Gold Rate in India: Yearly Comparison (2018–2025)
|
Year |
Average Gold Rate (24K/10 gm) |
|
2018 |
31,500 |
|
2019 |
35,220 |
|
2020 |
48,651 |
|
2021 |
47,150 |
|
2022 |
52,200 |
|
2023 |
58,500 |
|
2024 |
64,300 |
|
2025 |
72,800 (as of July 2025) |
Key Observations:
- 2020 saw a sharp increase due to COVID-19 uncertainty and global financial instability.
- Consistent growth post-2022, supported by inflation and global tensions.
Silver Rate in India: Yearly Comparison (2018–2025)
|
Year |
Average Silver Rate (1 kg) |
|
2018 |
38,000 |
|
2019 |
43,500 |
|
2020 |
62,000 |
|
2021 |
64,100 |
|
2022 |
67,500 |
|
2023 |
74,200 |
|
2024 |
78,900 |
|
2025 |
86,300 (as of July 2025) |
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| gold and silver rate increase comparison |
Key Observations:
- Silver has shown strong recovery post-pandemic, tracking industrial and investment demand.
- Price increases have been steady with some volatility due to global manufacturing trends.
Reasons Behind the Increase in Gold and Silver Rates in India
1. Global Economic Uncertainty
- During economic crises or global instability (like the COVID-19 pandemic or Russia-Ukraine war), investors move their money into safe assets like gold.
- Gold acts as a hedge against market volatility, leading to a spike in demand and price.
2. Rising Inflation and Currency Devaluation
- With rising inflation and the depreciation of the Indian Rupee, the purchasing power of money falls.
- Investors prefer precious metals to retain value, causing prices to shoot up.
- RBI’s monetary policies also indirectly impact the prices of gold and silver.
3. High Demand in India
- India is the second-largest consumer of gold globally.
- Weddings, festivals like Diwali and Akshaya Tritiya, and cultural events significantly drive seasonal demand.
- Post-pandemic recovery in consumer demand has pushed gold and silver rates even higher.
4. Geopolitical Tensions
- Ongoing conflicts such as Middle East unrest, Russia-Ukraine, and China-Taiwan tensions impact global supply chains and investor sentiments.
- Investors turn to precious metals as a hedge against geopolitical risk, inflating prices globally and locally.
5. Industrial Demand for Silver
- Unlike gold, silver has extensive industrial applications—solar panels, electronics, batteries, and EV components.
- With the global push toward green energy, EVs, and smart technologies, silver demand has skyrocketed.
- This dual nature (industrial + investment) makes silver prices more volatile and sensitive to global trends.
6. Import Duties and Government Policies
- India imports most of its gold and silver. Changes in import duties, GST, or customs policies directly affect domestic prices.
- In 2022, the government raised import duties, causing prices to rise further for Indian consumers.
7. Weak Rupee vs Dollar
- Gold and silver are priced in USD globally. A weakening INR vs USD means more rupees are needed to buy the same quantity, making prices surge locally.
- In 2024-2025, INR depreciated significantly, adding pressure to gold and silver costs in India.
Expert Views and Investor Sentiment
Most market analysts agree that:
- Gold will continue to rise steadily, especially in times of inflation or stock market uncertainty.
- Silver has more aggressive growth potential, driven by the clean energy revolution and industrial innovation.
Long-term investors see gold as a wealth preserver, while silver is being positioned as a high-risk, high-return asset.
Gold vs Silver: Which is a Better Investment in 2025?
|
Feature |
Gold |
Silver |
|
Risk Level |
Low |
Moderate to High |
|
Volatility |
Stable |
Volatile |
|
Demand Type |
Investment, Jewelry |
Industrial, Investment |
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Liquidity |
Very High |
High |
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Returns (5 Years) |
~100% |
~125% |
Conclusion:
- If you’re a conservative investor, gold remains the go-to asset.
- For those looking to leverage short-term price moves, silver might offer better returns—at higher risk.
Future Outlook for 2025 and Beyond
1. Gold Outlook
- Experts expect gold to cross ₹80,000/10 gm by end of 2025, depending on inflation trends, geopolitical conditions, and interest rates.
- Central banks are increasing their gold reserves, supporting bullish trends.
2. Silver Outlook
- Industrial demand will keep silver strong.
- With the rise of green tech, solar energy, and EV production, silver could cross ₹95,000–1,00,000/kg by early 2026.
Tips for Gold and Silver Buyers in India
- Buy during price dips or festive seasons.
- Check purity (BIS hallmark for gold, 999 for silver).
- Compare rates online before visiting jewellers.
- Use SIP options for digital gold investments.
- Monitor global news—gold and silver are sensitive to world events.
Conclusion
Gold and silver prices in India have consistently surged due to a combination of global economic uncertainty, rising inflation, industrial demand, and rupee depreciation. While gold remains the safer, traditional investment choice, silver is catching up as an attractive alternative, especially with its role in technology and green energy.
As we move further into 2025, both metals are expected to continue their upward trend. Understanding these dynamics can help investors make informed decisions in a volatile financial environment.