Silver Prices Surge After Import Duty Hike; Check Latest Silver Rates for May 14

Silver prices continued to climb sharply on Thursday, May 14, after the Indian government increased import duty on gold and silver from 6% to 15%. The decision has created major movement in the bullion market, with investors, traders, and jewellery buyers closely tracking how the higher import costs will affect domestic precious metal prices in the coming weeks.

The latest rise in import duty has intensified attention on gold and silver markets, especially at a time when precious metal prices were already trading near record highs. Analysts believe the government’s decision is likely to keep domestic bullion prices elevated due to India’s heavy dependence on imported precious metals.

Silver Prices Rise Across India

On Thursday, the price of silver witnessed strong upward momentum across major Indian cities.

Current silver prices stood at:

• ₹3,10,100 per kilogram in most major cities
• ₹3,101 per 10 grams nationally

Meanwhile, southern markets such as Chennai and Hyderabad recorded even higher silver prices, with rates touching approximately ₹3,20,100 per kilogram.

Experts say the price difference between northern and southern cities is influenced by local taxes, transportation costs, and regional demand patterns.

Why Silver Prices Are Rising

The biggest trigger behind the latest rally has been the government’s decision to sharply raise import duty on gold and silver.

According to market analysts, the move is aimed at:

• Reducing precious metal imports
• Supporting the weakening Indian rupee
• Managing trade deficit pressures
• Reducing pressure on foreign exchange reserves

India imports a significant portion of its precious metal requirements from international markets. As a result, any increase in import duty directly impacts domestic bullion prices.

The market reaction became even stronger after Prime Minister Narendra Modi reportedly appealed to citizens to avoid unnecessary gold purchases for the next year.

Strong Rally Seen on MCX

The impact of the policy change was clearly visible on the Multi Commodity Exchange (MCX), where silver futures witnessed sharp gains.

According to market reports:

• July 2026 silver futures jumped nearly ₹25,288
• Prices surged around 9.06%
• The contract touched approximately ₹3,04,350 per kilogram

Silver contracts for September and December also reportedly recorded gains close to 9%, indicating strong investor interest and aggressive buying activity.

Analysts say the rally was driven by:

• Increased safe-haven demand
• Policy-driven buying
• Import cost concerns
• Strong speculative participation

Experts Expect Continued Volatility

Bullion experts believe higher import duties could keep gold and silver prices elevated in the near term. However, they also warn that extremely sharp rallies may create short-term volatility and price corrections.

Some analysts expect higher prices to temporarily affect jewellery demand, particularly among budget-conscious consumers. However, India’s strong cultural attachment to precious metals is likely to continue supporting long-term demand.

Investment Demand for Precious Metals Rising

Experts note that investor demand for gold and silver has strengthened significantly in recent months due to:

• Weak stock market sentiment
• Global uncertainty
• Inflation concerns
• Desire for safer investment assets

Interestingly, market observers say investment demand for gold reportedly exceeded jewellery demand during the March quarter for the first time, reflecting growing investor preference for safe-haven assets.

Silver, too, is increasingly attracting investors because of its dual role as:

• A precious metal
• An industrial metal used in electronics, solar panels, EVs, and manufacturing

Silver Rates in Major Cities on May 14, 2026

Buyers Advised to Monitor Market Carefully

Financial experts advise jewellery buyers and investors to monitor price trends carefully before making large purchases during periods of extreme volatility.

While long-term demand for precious metals in India is expected to remain strong due to weddings, festivals, and investment needs, experts recommend avoiding emotional buying during sudden price spikes.

As import duty changes continue reshaping the bullion market, silver prices are expected to remain highly sensitive to:

• Government policy decisions
• Global economic developments
• Currency movements
• International commodity prices

For now, the precious metals market re