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India Silver Premium: India vs Western Prices

Track Indian silver prices vs COMEX/LBMA spot prices

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Prices for informational purposes only. Not financial advice. The site is still in beta and there may be inaccuracies.

Compare India vs Western:
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Price Comparison

India vs Western silver spot prices ($/oz)

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Understanding India Silver Premium

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.

Frequently Asked Questions

What is the India silver premium?
The India silver premium is the price differential between silver sold in Indian markets (like MCX) and international Western markets (like COMEX/LBMA). When Indian buyers pay more than global spot prices, it reflects strong domestic demand, import duties, or currency factors.
Why are silver prices higher in India than COMEX?
Indian silver prices include import duties (approximately 7.5%), GST, transportation costs, and are affected by the USD/INR exchange rate. Strong festival and wedding season demand also pushes premiums higher during certain periods.
What is MCX?
MCX (Multi Commodity Exchange) is India's largest commodity exchange where silver futures contracts are actively traded. MCX silver prices reflect expected future prices in the Indian market, including import duties and local premiums.
When is silver demand highest in India?
Silver demand in India peaks during Diwali, Dhanteras (the festival of wealth), and the wedding season (October-February). These periods often see higher premiums over international prices due to increased buying.
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