Silver prices in India are trading at one of their highest premiums over global markets after MCX futures surged nearly 6% on Wednesday to a fresh all-time high of around Rs 4,07,456 per kg.
Data comparing Indian and Western silver prices shows that MCX silver futures are trading at a premium of about $19 per troy ounce, or over 16%, compared with international prices on COMEX and LBMA. This marks one of the widest gaps seen in recent years.
On the global front, spot silver climbed close to the $120 per ounce level after touching record highs earlier this week. International silver prices are up nearly 60% so far this year, driven by a combination of strong investment demand, supply tightness, and safe-haven buying.
The sharp rally in India has been amplified by spillover strength from gold, which is trading near record levels close to $5,600 per ounce globally. As gold prices surge, investors have increasingly shifted towards silver as a relative value and momentum trade, intensifying domestic buying interest.
Supply-side constraints have also played a key role. Market participants point to tight availability of above-ground silver stocks and expectations of a continued supply deficit in 2026. Reduced inventories, coupled with steady industrial demand, have kept the silver market structurally tight.
In addition, heightened geopolitical tensions, global trade uncertainty, and currency volatility have strengthened demand for physical precious metals in India, contributing to the elevated premium over Western prices.
