From Mines To Markets: Why Silver Shines Cheaper In India Than China |

Updated: January 27, 2026 00:06

Image Source: The Secretariat

Silver sells for around 17% less in India than in China because Chinese buyers pay hefty physical premiums, local demand is strong, and export rules have tightened. India’s market reflects global pricing with smaller premiums, while China’s policy-driven domestic price spike widens the gap.

Real-time commodity markets reveal that silver in India is trading at a noticeable discount relative to China — about 17% cheaper — stirring investor and industrial interest. According to recent reporting, the difference stems largely from how the Chinese market values physical silver and the policy environment affecting local premiums and export dynamics.

Why This Price Gap Exists

Key Highlights:

In China, the silver market commands higher local prices because buyers are paying significant premiums over global spot rates to secure physical metal rather than paper contracts. This drives Chinese domestic prices well above international benchmarks.
China’s domestic demand for physical silver — particularly for industrial uses and strategic stockpiles — has intensified, contributing to elevated local pricing. In contrast, Indian prices are more closely aligned with international rates plus modest local premiums, keeping them relatively lower.
Export controls introduced by Chinese authorities, including licence-based approvals for silver shipments starting in early 2026, have restricted supply flows out of China. These measures have tightened the domestic market and amplified price pressures in China relative to India.
India, on the other hand, remains a major importer of refined silver and has not seen the same level of physical premium escalation as China. The broader Indian market reflects global supply and demand trends with fewer localized distortions, keeping prices comparatively cheaper.

Context And Market Signals:

This price divergence underscores broader global commodity market shifts. Silver’s value has surged amid tightening supply chains, industrial demand growth, and safe-haven buying, contributing to record highs globally. Yet regional differences in premiums, physical demand intensity, and policy levers continue to shape local price outcomes.

Sources: Financial Express, Vocal.media.

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