Silver Prices Hit Record ₹2 Lakh Mark in Chennai Amid Festive Demand and Global Rally

In Chennai, the cost of silver has risen to more than ₹2 lakh per kilogram which has been the first time ever prices have gone so high due to the combination of festive demand and a strong global precious metal rally. The metal has jumped almost 28% within a period of a little over two weeks mainly because of the strong industrial demand, investor’s interest, and a weaker US dollar.

As per the Economic Times report which refers to Goodreturns data, silver was valued at ₹2,06,000 per kilogram or ₹206 per gram on Thursday in the physical market of Chennai. On October 1st, the price was ₹1,61,000 per kg, which means it has increased by ₹45,000 this month alone. The metal had reached the monthly high of ₹2,07,000 on October 15 and had come down by ₹1,000 afterwards.

Festive rush fuels silver buying

Ahead of Dhanteras and Diwali, jewellers report a surge in purchases of silver coins, utensils, and lightweight ornaments, as buyers look for affordable alternatives to gold. Retailers in Chennai are witnessing strong customer inflows, further boosting local demand.

Global cues and industrial demand

The increment in demand for silver in Chennai coincides with the general movements of both domestic and international markets where the cost of silver has gone beyond the level of ₹1.9 lakh per kg throughout India. The increase in prices is credited to industrial consumption, investor hedging, and rate cuts in the US being anticipated, all helped by a weaker dollar aiding the price of precious metals throughout the world, as per analysts.

Silver price snapshot (October 16, 2025)

8 grams: ₹1,648

10 grams: ₹2,060

100 grams: ₹20,600

1 kilogram: ₹2,06,000

These rates mark a slight decline from the previous day, when silver was priced at ₹2,07,000 per kg.