Silver Prices Dip on Diwali Amid Global Market Volatility – Here’s the Latest City-Wise Update

As India celebrates Diwali, the festival of wealth and prosperity, silver prices have taken a surprising dip across major cities. After weeks of steady gains, silver witnessed a sharp correction on October 20, 2025, reflecting both global market trends and investor profit booking after Dhanteras.

Silver Slips Despite High Festive Demand

On Diwali morning, silver prices in India fell to around ₹1,71,900 per kilogram in most major cities, marking a decline of nearly ₹8,000 within a week. In Delhi’s bullion market, silver dropped by ₹7,000 on Dhanteras itself, settling at ₹1,70,000 per kg. Despite the short-term fall, silver remains significantly higher year-on-year — it has surged nearly ₹70,300 or over 70% since last Diwali.

While the price correction has slightly dampened market sentiment, festive demand remains strong. On Dhanteras, silver outshone gold in terms of consumer preference. Retailers reported a 35–40% increase in silver coin and bar sales compared to last year. In value terms, sales more than doubled, driven by rising investor interest and the belief that silver offers long-term growth potential.

City-Wise Silver Rates on Diwali (per 1 kg)

• Delhi: ₹1,71,900

• Mumbai: ₹1,71,900

• Ahmedabad: ₹1,71,900

• Chennai: ₹1,89,900

• Kolkata: ₹1,71,900

• Hyderabad: ₹1,89,900

• Jaipur: ₹1,71,900

• Bengaluru: ₹1,79,900

• Surat: ₹1,71,900

• Pune: ₹1,71,900

The variation in prices across cities primarily reflects local taxes, making charges, and transportation costs. Southern markets like Chennai and Hyderabad consistently record higher rates due to strong demand for silver jewelry and traditional items.

Global Markets Witness Sharp Decline

Internationally, silver has seen a steep correction of over 6%, its biggest fall in the past six months. The metal, which recently touched $54.50 per ounce, slipped amid widespread profit booking and easing supply concerns.

The London silver market, which faced a severe liquidity crunch earlier this month, is now gradually stabilizing. On October 9 — just a week before Dhanteras — the market nearly froze as sellers became scarce and borrowing costs for silver surged by almost 200% overnight. Major banks and trading houses temporarily withdrew from the market to limit risk exposure. This led to a wide gap between bid and ask prices, bringing trading activity to a near halt.

With supply concerns now easing and investor sentiment stabilizing, analysts expect the market to regain balance in the coming weeks. However, short-term volatility is likely to persist due to fluctuating global interest rates, geopolitical tensions, and the U.S. dollar’s strength.

Silver vs Gold: The Festive Shift

Interestingly, this festive season has seen silver stealing the spotlight from gold. While gold remains a traditional favorite, its high prices have prompted many consumers to turn to silver for both investment and gifting purposes. Retailers note that younger buyers, in particular, prefer silver coins and artifacts due to their affordability and rising resale value.

Outlook for Silver Investors

Market experts believe the current dip may present a buying opportunity for long-term investors. With industrial demand for silver increasing — especially from sectors like solar energy and electric vehicles — the metal’s long-term fundamentals remain strong.

In the short term, traders expect prices to hover between ₹1,70,000 and ₹1,85,000 per kg, depending on global cues. Investors are advised to watch international price trends and the U.S. Federal Reserve’s next policy move before making major decisions.

As Diwali lights up India, silver’s shine may have dimmed temporarily — but its long-term sparkle continues to attract both investors and traditional buyers alike.