India Silver Premium: India vs Western Prices
Track Indian silver prices vs COMEX/LBMA spot prices in real-time
Price Comparison
India vs Western silver spot prices ($/oz)
About India Silver Premium
The India silver premium tracks the price differential between silver sold in Indian markets and international Western markets. India is one of the world's largest silver consumers, with significant demand from jewelry, industrial, and investment sectors. When Indian buyers pay more than global spot prices, it typically reflects strong domestic demand, import duties, or currency factors. Traders monitor this spread as an indicator of regional market conditions and potential arbitrage opportunities.
MCX vs International Markets
The Multi Commodity Exchange (MCX) is India's largest commodity exchange, where silver futures contracts are actively traded. MCX silver prices often differ from COMEX due to import duties (currently ~7.5%), GST, transportation costs, and the USD/INR exchange rate. The MCX futures price reflects expected future prices in the Indian market, including these premiums.
Why Silver Prices Differ in India
Indian silver prices diverge from Western markets due to several factors: import duties and taxes (adding 10-15% to base prices), strong festival and wedding season demand, physical delivery requirements on domestic exchanges, and the INR/USD exchange rate. The premium tends to rise during Diwali, Dhanteras, and the wedding season when demand peaks.
Using the Premium as a Market Indicator
A rising India premium often signals strong physical buying in India—one of the world's largest silver consumers. Conversely, a declining or negative premium (discount) may indicate weakening Indian demand or high local inventory. Many global investors and analysts watch the India premium as an indicator of physical market conditions and potential price direction.