(Image Source: The Economic Times)
Gold and silver prices in India have climbed to all-time highs, with gold trading at Rs 1,35,550 per 10 grams on December 22 and silver reaching Rs 2,34,000 per kilogram by December 25. The surge in precious metals reflects global uncertainties, hopes for more interest rate cuts, and strong buying during the festive season. Investors are moving money into gold and silver as safe assets while stock markets face selling pressure from foreign funds pulling out money.
Gold has done exceptionally well this year, nearly doubling in price over two years. The metal hit a new record on December 22 at Rs 1,35,550 per 10 grams, beating the previous high from October. Silver’s performance has been even more stunning. From Rs 7,900 per kilogram in 2000, silver now trades near Rs 2,34,000, a gain of over 2,600 percent in 25 years. Someone who invested Rs 1,000 in silver two and a half decades ago would have Rs 26,455 today.
Gold and Silver Prices Soar in the Final Days of December
Gold prices moved up sharply in late December. On December 25, 24-karat gold cost Rs 13,925 per gram in Delhi, Mumbai, Bengaluru, and most cities. For 10 grams of 24-karat gold, people paid Rs 1,39,250. The 22-karat version was at Rs 12,765 per gram. In just four days, 24-karat gold climbed Rs 507 per gram, or Rs 50,700 per 100 grams.
Silver’s jump was even bigger. After jumping Rs 10,000 per kilogram in one session, silver rose another Rs 1,000 on December 25 to hit Rs 2,34,000 per kg. This means silver is now Rs 97,000 higher than September when it traded around Rs 1,37,000 per kg. On December 10 alone, silver jumped Rs 9,000, showing how fast buyers are moving to lock in purchases.
What’s Pushing Gold and Silver Higher
Several things are happening at once. Tension between the United States and Venezuela has made investors nervous about supply problems. This pushes them toward gold and silver as stores of value when things get uncertain. The Federal Reserve cut interest rates by 25 basis points in early December. People now expect two more rate cuts early next year. When interest rates fall, gold becomes more attractive because you don’t lose out by holding something that doesn’t pay interest.
The Indian rupee has also weakened against the US dollar. A weaker rupee makes imported silver more expensive in India. Silver imports into India fell about 42 percent this year, creating shortages. When supply gets tight but demand stays high, prices shoot up. Domestic silver prices now cost more than world prices, something that rarely happens and shows how desperate buyers are.
Interestingly, gold sales in India actually fell 35 percent year-on-year in November despite these high prices. People are getting cautious about buying gold at record levels. But silver remains in demand because people want it for jewelry, ceremonies, and gifts before Holi.
Looking Forward to Investors
For investors holding gold and silver, 2025 has been an outstanding year with remarkable returns. But current high prices raise questions. The US inflation number came in at 2.7 percent in November, lower than expected. This gives the Federal Reserve room to cut rates further, which is good news for gold. The Bank of Japan’s recent rate increase to 0.75 percent, its highest in 30 years, also supports gold as a hedge against global uncertainty.
Jewelers report record advance orders even at these high prices, showing that people still want gold and silver for gifts and wealth storage. For those thinking about buying now, advisors suggest buying in smaller amounts over time rather than putting all money at once when prices are at their peaks. The rally, while impressive, reflects real economic worries that could continue through early 2026. If the Federal Reserve cuts rates again or if global tensions get worse, prices could go even higher.
