Silver beats gold and platinum with 47 percent surge over past year

Silver has outperformed gold and platinum over the past year, registering a gain of about 47 percent in rupee terms since the last Dussehra.

Market Movements

Silver saw a volatile session at the end of 2025 and a steep surge at the beginning of 2026, reaching all-time highs in January and February before sharp corrections in March. Gaurav Garg, Head of Research at Lemonn, noted that silver is up 155 percent by January but remains 53 percent off its peak, meaning buyers near the January highs are still facing losses. Meanwhile, gold prices in India surged nearly 26 percent over the last year, following a sharp uptick in January and a steep correction in February. Platinum posted a modest gain of about 10.5 percent in rupee terms over the same period.

Driving Factors

External financial factors also helped push domestic returns higher. The Indian Rupee weakened from 88.71 to 95.05 per dollar, and the import duty was raised from 6 percent to 15 percent on May 13, 2026, pushing domestic prices up by about 8.5 percent. For gold, continuous central bank buying provided strong price support, with central banks purchasing nearly 289 tonnes in the second quarter of 2026 alone, while China's central bank added 23 tonnes in September. Silver benefited from high industrial utility and strong demand among jewellery buyers.

Future Outlook

Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd., states that gold is likely to remain supported over the next five to six months due to central bank purchases, geopolitical uncertainty, and safe-haven demand. Singh adds that silver offers good potential backed by industrial demand and investment interest alongside high volatility, while platinum could recover if supply tightness persists, making silver the higher upside option and gold the safer choice.

Context

Precious metals like gold and silver have historically served as a hedge against currency depreciation and economic uncertainty for Indian households, especially around festive periods like Dussehra. Import duties and foreign exchange rates directly dictate the domestic cost of these globally traded commodities independent of international spot prices alone.