Silver Rockets to ₹1.07 Lakh per Kilo on MCX, Gold Pauses for Breath

India’s bullion market kicked off the week with a striking divergence. **Silver futures on the Multi Commodity Exchange (MCX) vaulted 1.4 percent on Monday, smashing through ₹1,07,000 per kilogram before settling at ₹1,06,965.

** Gold futures for August delivery, by contrast, inched up a mere 0.04 percent to ₹97,077 per 10 grams, reflecting a wait-and-watch stance after strong U.S. payroll data tempered hopes of near-term Federal Reserve rate cuts.

What’s Driving Silver Higher?

• Industrial pull – Electric-vehicle batteries, 5G components, and high-efficiency solar panels are guzzling silver for its unrivalled conductivity and reflectivity.
• Safe-haven rotation – A softer U.S. dollar and simmering geopolitical flashpoints have spurred investors to seek the metal’s haven qualities on top of its industrial use.
• Tight supply lines – Global mine output is still recovering from pandemic disruptions, while the recycling pipeline remains tepid, putting a floor under prices.

Spot action mirrored futures: the All-India Sarafa Association logged Delhi silver at ₹1,08,100 per kilogram, adding ₹1,000 in a single session.

Gold Holds Its Ground

Gold’s muted tone stems from mixed global cues:

• Robust U.S. payrolls cooled imminent rate-cut bets, capping bullion’s momentum.
• Tentative U.S.–China détente pried some capital back into risk assets, trimming safe-haven flows.

Even so, international spot gold hovered near USD 3,313 per ounce, still lofty by historical standards.

Market Snapshot (10 June 2025)

| Metal | Contract | Latest Close | Day-to-Day Move | |--------|----------|--------------|-----------------| | Silver | MCX Jul | ₹1,06,965 / kg | ▲ ₹1,506 (+1.43 %) | | Gold | MCX Aug | ₹97,077 / 10 g | ▲ ₹41 (+0.04 %) |

Unique Silver Insights You Might Have Missed

1. The Solar-Power Multiplier

The next-gen TOPCon and heterojunction solar cells use 15–20 percent more silver paste per watt than older PERC cells. With India’s solar-installation target climbing toward 500 GW by 2030—and similar megaprojects in China and the U.S.—demand from photovoltaics alone could add an extra 110–120 million ounces annually over the next three years.

2. EV Wiring Is Just Getting Started

A typical internal-combustion engine uses about 15 grams of silver; a battery-electric vehicle can use 50–55 grams in high-voltage wiring, charging ports, and battery management systems. BloombergNEF projects that by 2028, EVs will consume over 140 million ounces of silver a year, roughly equivalent to Mexico’s entire annual mine output.

3. ETF Inventories Tell a Contrarian Story

While prices soar, exchange-traded fund (ETF) holdings have actually declined about 4 percent YTD, indicating that the rally is not being driven by speculative paper flows. Physical demand—especially in Asia—appears to be in the driver’s seat, giving the up-move sturdier legs.

4. The Gold-to-Silver Ratio Is Flashing “Re-Rate”

Historically, when the gold-to-silver price ratio compresses below 70:1, silver often captures momentum for several quarters. The ratio recently dipped to 67:1—its lowest since 2021—signalling that silver may continue to outperform if macro conditions remain supportive.

5. India’s Import-Duty Dynamics

New Delhi’s 2023 adjustment that re-classifies silver dore and silver bars under one tariff umbrella effectively raised the landed cost of imported silver by 2.5 percent. Domestic jewellers and industrial users rushed to shore up inventory ahead of the change, creating a demand bulge that still ripples through MCX pricing.

6. Refiners Eye “Green Silver” Credentials

Major smartphone OEMs now insist on conflict-free and carbon-tracked supply chains. Indian refiners that certify low-carbon silver—using solar furnaces and recycled feedstock—command premiums of ₹500–₹700 per kilo, a signal that ESG credentials are beginning to affect spot pricing.

Analyst View

“Silver’s breakout above USD 36 per ounce ends a 13-year consolidation. If industrial demand stays firm, the rally may still have legs.”
— Rahul Kalantri, Vice-President, Commodities, Mehta Equities

HDFC Securities’ Saumil Gandhi adds that gold remains “boxed in a lower band” while traders recalibrate Fed timing, but silver’s dual demand—industrial plus safe-haven—could keep it decoupled.

Bottom Line

Silver’s vertical move underscores its evolving role: no longer just the “poor cousin” of gold but a critical industrial metal underpinning the green-tech revolution. Gold, meanwhile, waits for clearer macro signals. Watch forthcoming U.S. CPI data, Fed commentary, and any fresh geopolitical turbulence—each could reset the precious-metals chessboard in a hurry.

Disclaimer: This article is for informational purposes only. Always consult a certified financial advisor before investing in commodities.