Today, January 7, the Indian bullion market witnessed a historic moment as silver prices reached an unprecedented all-time high, while according to data from the India Bullion and Jewellers Association (IBJA), silver recorded a significant increase of ₹2,894, pushing its price to a record ₹2,46,044 per kilogram. This marks a substantial rise from yesterday's closing price of. ₹2,43,150, signaling strong demand and market sentiment for the white metal.
Gold Experiences a Minor Setback
While silver celebrated its record-breaking ascent, gold prices experienced a slight downturn today. The price of 10 grams of 24-carat gold fell by ₹45, settling at ₹1,36,615, while this is a marginal decrease from its previous level of ₹1,36,660. It's important to note, however, that gold itself had recently touched its own all-time high of ₹1,38,161 on December 29, 2025, underscoring its overall strong performance in the broader market context.
Precious Metals' Stellar Performance in 2025
The year 2025 proved to be exceptionally strong for both gold and silver, delivering remarkable returns to investors. Gold prices surged by an impressive ₹57,033, marking a 75% increase over the year. On December 31, 2024, 10 grams of 24-carat gold were priced at ₹76,162, which escalated to ₹1,33,195 by December 31, 2025. This significant appreciation reflects a growing investor preference for safe-haven assets amidst global economic uncertainties.
Silver's Unprecedented Growth Trajectory
Silver outshone gold in 2025 with an even more spectacular performance, witnessing an astounding increase of ₹1,44,403, or 167%. A kilogram of silver, which was priced at ₹86,017 on December 31, 2024, closed the year at ₹2,30,420. This phenomenal growth in silver prices is largely attributed to its burgeoning industrial demand and shifts in the global supply-demand dynamics.
Key Factors Driving Gold's Rally
Several significant factors have contributed to the sustained upward trajectory of gold prices, making it a highly sought-after investment. These three primary reasons continue to bolster gold's appeal.
Weakening US Dollar
The anticipation of interest rate cuts by the United States has led to a weakening of the dollar. A weaker dollar makes dollar-denominated gold more affordable and attractive for investors holding other currencies, thereby stimulating demand. Gold is often seen as an inverse asset to the dollar, meaning a decline in the dollar's value typically supports higher gold prices.
Escalating Geopolitical Tensions
Global conflicts, such as the ongoing Russia-Ukraine war, and heightened geopolitical tensions worldwide, push investors towards traditional safe-haven assets. In times of increased uncertainty and instability, gold is considered a reliable store of value, prompting investors to allocate capital to the precious metal to safeguard their wealth, which in turn drives up its price.
Central Bank Gold Accumulation
Central banks, particularly those in major economies like China, have been aggressively accumulating gold reserves. These institutions are reportedly purchasing over 900 tons of gold annually. This consistent, large-scale institutional buying creates a strong and sustained. Demand floor for gold, exerting upward pressure on its market value.
Factors Fueling Silver's Explosive Growth
Silver's recent surge in prices is also propelled by a unique set of factors that highlight its evolving role beyond traditional jewelry.
Surging Industrial Demand
Silver's utility has expanded Notably beyond its traditional use in jewelry. It has become a critical raw material in rapidly growing. Industries such as solar energy, electronics, and electric vehicles (EVs). The heavy industrial consumption of silver in these sectors is a major driver of its demand, pushing prices higher as its role as an essential industrial commodity solidifies.
Fear of Trump's Tariffs
There is a palpable concern among American companies regarding potential trade tariffs, especially under a future administration that might reintroduce protectionist policies, such as those advocated by former President Trump. This fear is prompting US companies to preemptively stockpile large quantities of silver to mitigate future import costs, creating an artificial scarcity in the global supply and driving up prices.
Manufacturer Hoarding and Supply Concerns
Manufacturers, apprehensive about potential production disruptions or further price increases in the future, are actively purchasing and hoarding silver. This competitive buying and accumulation of raw materials in advance reduce the immediate availability of silver in the market, contributing to a perceived shortage and sustaining the upward price momentum in the coming months.
Future Outlook: Continued Upward Trajectory Expected
According to Ajay Kedia, Director of Kedia Advisory, the demand for silver is currently strong and is anticipated to remain so. He projects that silver could reach ₹2. 75 lakh per kilogram this year, while similarly, the demand for gold is also expected to maintain its strong pace. Kedia estimates that gold could surpass ₹1. 50 lakh per 10 grams by the end of this year, signaling continued positive prospects for investors in precious metals. This forecast is underpinned by prevailing global economic conditions and the increasing utility of these valuable commodities.
