Silver price history in India: 2000 to 2025

Want to buy silver? Here's everything you need to know about the silver prices over the decades, how to invest, and what the taxation rules are

By Forbes India

Published: Jul 31, 2025 02:56:41 PM IST

Updated: Aug 8, 2025 03:17:06 PM IST

Silver has always had a steady place in Indian households, second only to gold, but no less significant. Its importance goes beyond mainstream traditions. From family heirlooms and temple offerings to large-scale industrial use, silver continues to hold value across different sections of society and industry.

The metal plays a key role in sectors like electronics, photovoltaic cells, and medical equipment, all of which could influence the current silver price. A mix of global markets, industrial demand, and cultural buying trends shapes the price of silver in India.

In this article, we’ll discuss the past prices and current shifts, how to invest in silver in India, and the tax rules to consider before buying the metal.

What influences the cost of silver?

Apart from the base rate, the final silver price is also based on taxes, purity, and often additional charges (especially for coins or ornaments). It is calculated using the formula:

Final silver price = (Silver price per gram X Purchase volume X Purity) + 3% GST + Making charges (if applicable)

Beyond this, the cost of silver is shaped by several domestic and global factors:

Also Read: Explained: Why are silver prices rising?

Global silver prices: Since India imports most of its silver, international rates are the starting point for domestic pricing. Any shift in global demand or supply can directly impact the current silver price.

INR-dollar exchange rate: A weaker rupee against the dollar makes silver imports costlier, pushing prices higher in India.

Industrial demand: Silver's use in solar panels, electronics, the chemical industry, and medical devices means that rising demand from these sectors can influence the silver price.

Inflation and interest rates: When inflation rises, silver often attracts more buyers, which can increase prices. However, when interest rates are high, they reduce investors’ interest in silver, potentially leading to a decrease in prices.

Mining output and government policies: Disruptions in supply, higher extraction costs, and import duties all add to the final price of silver for Indian buyers.

Silver price chart: 25-year timeline

Here’s how the price of silver in India has changed over the last 25 years:

Year	Silver Price (in ₹/kg)
2025	1,17,000 (as on August 8, 2025)
2024	95,700
2023	78,600
2022	55,100
2021	62,572
2020	63,435
2019	40,600
2018	41,400
2017	37,825
2016	36,990
2015	37,825
2014	43,070
2013	54,030
2012	56,290
2011	56,900
2010	27,255
2009	22,165
2008	23,625
2007	19,520
2006	17,405
2005	10,675
2004	11,770
2003	7,695
2002	7,875
2001	7,215
2000	7,900

The current silver price as of July 2025 stands at around ₹114,000 per kg. The metal has seen a steady climb over the years, supported by strong industrial demand, tech innovation, and global trends.

Back in 2018-2019, the price of silver in India hovered around ₹40,000 per kg. After the COVID-19 pandemic, silver prices started spiking steadily, crossing ₹ 78,000 in 2023, driven by demand and supply, as well as rising interest from both investors and industries.

How to invest in silver in India?

There are different ways to invest in silver in India, depending on your financial preferences and investment goals.

Silver coins: These are suitable for smaller investments. Readily available through banks and jewellers, though they may charge a slightly higher premium due to design and packaging.

Silver bars: These are preferred by those who want to invest larger sums. They’re available via reputed dealers or jewellers and offer better value per gram, but require secure storage.

Silver jewellery: Deco ornaments or jewellery aren’t ideal for pure investment purposes due to the presence of mixed metals and additional making charges.

Silver ETFs: They track the spot price of silver in real time. Fund managers hold physical silver, and the net asset value (NAV) moves in line with the market. SEBI regulations ensure clarity and transparency.

Commodity market (futures): This is a market-linked option where returns can fluctuate. It doesn’t involve holding physical silver and is generally used by those with a higher risk appetite.

As the price of silver in India changes with global and domestic trends, understanding each investment format helps you plan better.

Tax implications on silver

Silver purchases in India attract a flat 3 percent GST, irrespective of the form of silver products. Tax is applied on the final silver price as well as on making charges, especially in the case of coins, jewellery, or bars. This simplified structure replaced the earlier combination of VAT and excise duties, which varied across states.

For investments like silver ETFs, taxation is based on how long the asset is held:

If they’re held for over 3 years, the profits or long-term capital gains are taxed at 20 percent with indexation benefits.
If they’re sold within 3 years, they are called short-term capital gains and are taxed according to the individual’s income tax slab.

Keeping track of all the factors and taxation rules can offer better clarity on the cost of silver, if you’re looking at it as part of your financial or personal goals.