India Silver Premium: India vs Western Prices
Track Indian silver prices vs US spot prices
Prices for informational purposes only. Not financial advice. The site is still in beta and there may be inaccuracies.
Price Comparison
India vs Western silver spot prices ($/oz)
What is the India Silver Price?
The India silver price refers to silver traded on the Multi Commodity Exchange (MCX), India's largest commodity derivatives exchange. MCX silver futures are quoted in Indian Rupees (INR) per kilogram, making them distinct from COMEX (USD per troy ounce). India is the world's largest silver consumer after China, with demand driven by jewelry manufacturing (especially in Gujarat and Rajasthan), silverware for religious ceremonies, and growing investment interest. The MCX silver price reflects local supply/demand plus import duties, taxes, and currency factors.
Why India Silver Trades at a Premium
Indian silver prices include significant additional costs over international spot prices. Import duty (currently 7.5%), GST (3% on bullion), and customs cess add 10-15% to base costs. Transportation and refining margins add more. Beyond taxes, strong physical demand— especially during Diwali, Dhanteras (the festival of wealth), Akshaya Tritiya, and the October-February wedding season—pushes premiums higher. When Indian buyers pay substantially above US spot prices, it signals robust physical demand that may indicate broader market strength.
MCX Silver vs COMEX Silver
MCX and COMEX are fundamentally different markets. COMEX (New York) trades futures in USD per troy ounce with minimal physical delivery—it's primarily a financial hedging market. MCX trades in INR per kilogram and sees higher physical delivery rates due to India's massive jewelry industry. MCX prices incorporate import duties and local premiums that COMEX doesn't. When comparing prices, you must convert units (1 kg = 32.15 troy ounces), adjust for INR/USD exchange rates, and account for the 10-15% tax/duty differential to understand the true premium.
How India Silver Prices Are Updated
Our India silver data updates during MCX trading hours (Monday-Friday: 9:00 AM - 11:30 PM IST, with variations for daylight saving). We source MCX silver futures prices, convert from INR/kg to USD/oz using real-time exchange rates, and calculate the premium versus US spot prices. The premium calculation accounts for the INR/USD rate at the time of comparison. Historical data shows seasonal patterns—premiums typically spike 2-4 weeks before major festivals as jewelers stock up for retail demand.
Frequently Asked Questions
- What is the current import duty on silver in India?
- As of 2024, India charges 7.5% import duty on silver, plus 3% GST on bullion, and additional cess. Total taxes add approximately 10-15% to international spot prices, which is the baseline for any premium calculation.
- Can I buy physical silver at MCX prices?
- MCX prices are for futures contracts, not retail purchases. Physical silver from dealers typically costs more due to making charges, dealer margins, and local taxes. MCX prices are a benchmark for wholesale/institutional pricing.
- What time does MCX silver trading open and close?
- MCX silver trades Monday-Friday from 9:00 AM to 11:30 PM IST (with a brief break). Trading hours may vary slightly for daylight saving adjustments in the US, which affects the overlap with COMEX trading.