Indore's Silver Rate Rebounds to ₹260 per Gram Amid Global Supply Deficit
The silver rate in Indore's Sarafa Bazar rebounded to ₹260 per gram on August 31, 2026, after a two-session correction. The recovery was attributed to physical buying, which reflected a market consensus that the correction had gone further than the fundamentals warranted.
According to the Silver Institute, the global silver market is facing its sixth consecutive annual supply deficit, driven by structural industrial demand growth in photovoltaic manufacturing, electronics, and electric-vehicle components. Indore's bullion market serves a significant wedding jewellery demand in Madhya Pradesh, with dealers expecting a recovery in prices before seasonal demand accelerates from October to January.
The silver rate in Mumbai stands at ₹261 per gram, placing Indore a single rupee below the Maharashtra benchmark. Dealers in Sarafa Bazar typically cross-check the Indian Bullion and Jewellers Association Mumbai rate before confirming large transactions, which includes a 3% GST on all silver purchases.