Factors Affecting Silver Price in India
Why silver is more volatile than gold.
Rates as on 26 September 2026 · Updated 27 September 2026Overview
Silver is both a precious metal and an industrial metal. Its price in India follows the international price (USD per troy ounce), the rupee exchange rate, import duty and GST — and swings more than gold because industrial demand is cyclical.
| Particular | Details |
|---|---|
| Global benchmark | LBMA / COMEX silver in USD/oz |
| Currency | USD/INR |
| Duty & tax | 6% import duty + 3% GST |
| Volatility | Typically 1.5–2× gold |
Key factors
Indian rates move with global silver.
Solar panels, electronics and EVs consume more than half of global silver.
Weaker rupee → costlier silver.
Investors switch between metals when the ratio is extreme.
Higher real rates and a strong dollar weigh on prices.
Duty changes move domestic rates instantly.
Dhanteras, Diwali, weddings lift local premiums.
Most silver is a by-product of lead, zinc and copper mining.
Frequently asked questions
Why is silver more volatile than gold?
A smaller market and heavy industrial usage make it more sensitive to economic cycles.
Silver rates are indicative market references (26 September 2026) and change during the day. Rules on tax, hallmarking and investment products can change — verify with official sources. FinancePortal does not sell silver.