Silver swung from about ₹3.5 lakh per kg in February 2026 to around ₹2.1–2.5 lakh later in the year. It can reward investors — but it is far more volatile than gold.
Key takeaways
- Over half of global silver demand is industrial (solar panels, electronics, EVs), which makes prices cyclical.
- Silver ETFs (since 2022) and silver FoFs are the simplest regulated ways to invest.
- From 1 April 2026, lenders can give loans against silver jewellery (up to 10 kg) and coins (up to 500 g).
- Tax: 12.5% LTCG — after 12 months for ETFs and 24 months for physical silver.
Ways to invest
| Option | Min | Costs | Notes |
|---|---|---|---|
| Coins/bars (999) | 5 g | Premium + 3% GST | Storage needed |
| Silver ETF | 1 unit | Expense ratio | Demat required |
| Silver FoF | ₹100–₹500 SIP | ETF + FoF costs | No demat |
| MCX futures | 1 kg (Micro) | Margin | Leveraged — risky |
| Digital silver | ₹1 | 3% GST + spread | Unregulated |
Silver loans at a glance
| Loan amount | Max LTV |
|---|---|
| Up to ₹2.5 lakh | 85% |
| ₹2.5–5 lakh | 80% |
| Above ₹5 lakh | 75% |
Valuation uses the lower of the 30-day average or previous day's closing price.
Should you invest?
- Keep silver as a smaller allocation than gold.
- Use SIPs to average volatility.
- Avoid leverage unless you are an experienced trader.
Your action checklist
- Check today's city rate for your purity before visiting a jeweller.
- Insist on BIS hallmark with HUID and verify it on the BIS CARE app.
- Get making charges, stone weight and GST itemised on the invoice.
- For investment, prefer regulated paper options (ETF, gold/silver funds).
- Keep invoices for capital-gains calculation when you sell.
FAQs
Is silver hallmarking mandatory?
HUID-based silver hallmarking was introduced in September 2025; check BIS for the current mandatory status.
Why is silver cheaper than gold?
It is far more abundant and largely industrial.
Check today's silver rate.
