Indian Silver Market Recovers from Powell-Induced Drop
The Indian silver market experienced a recovery on Monday, August 31, after Federal Reserve chair Jerome Powell's remarks at the Jackson Hole symposium in Wyoming caused MCX silver to drop roughly ₹22,000 per kilogram over two sessions.
Retail rates spanned an eight-gram range, from ₹258 per gram in Ahmedabad, Surat, and Jaipur to ₹266 in Chennai, with cities further from the Mumbai supply hub paying more due to freight costs. This spread is a result of local logistics, dealer margins, and how each regional market reads the MCX Mumbai reference.
The Silver Institute's World Silver Survey 2026 projects a sixth consecutive annual supply deficit, with industrial demand outpacing global mine output. The survey estimates India's combined jewellery, silverware, and investment demand at approximately 18% of global silver offtake, second only to China.