TL;DR: Gold prices in India have surged 143% in the last seven years, rising from an average of ₹31,193 per 10 grams in 2018–19 to an average of ₹75,842 in 2024–25. Silver has also seen a sharp increase, making it a popular alternative for smaller investors. The gold-to-silver ratio now shows that one kilogram of gold equals about 85 kilograms of silver, reflecting changing dynamics in precious metals.
Context
With Dhanteras and Diwali approaching, families across India are gearing up to buy gold and silver, a tradition symbolising prosperity and financial security. Gold has long been a trusted safe-haven asset, protecting wealth during times of inflation and uncertainty. Historically, it was also a form of financial independence for women when property ownership was restricted. Silver, while more affordable, is favoured for daily-wear jewellery, industrial use, and smaller investments, making it popular among first-time investors.
Who Compiles This Data?
The Reserve Bank of India compiles the yearly price data in its annual publication, “Handbook of Statistics on the Indian Economy”. The handbook offers extensive macroeconomic and financial data, covering output, prices, banking, financial markets, public finance, foreign trade, balance of payments, and socio-economic indicators.
Where can I download Clean & Structured Data about Gold & Silver Prices?
Clean, structured, and ready-to-use datasets related to year-wise Average Price of Gold and Silver in Domestic and Foreign markets can be downloaded from Dataful.
Key Insights
Gold’s Steady Rise as a Safe Haven Asset
Gold prices in Mumbai have more than doubled in the past seven years, reflecting its role as a trusted store of value during periods of economic and geopolitical turbulence. These prices rose from an average of ₹31,193 per 10 grams in 2018–19 to an average of ₹75,842 in 2024–25, representing a 143% increase.
In India, cultural demand further drives its price, with gold remaining a central part of savings and gifting traditions, especially during weddings and festivals.
Domestic vs. International Gold Prices – The Widening Spread
Domestic gold prices in Mumbai have consistently stayed above international prices in London, with the price gap peaking at ₹7,939.53 in 2023–24. This gap is driven by import duties, high seasonal demand during festivals and weddings, and fluctuations in the rupee. In 2024–25, Mumbai’s average price was ₹75,842 compared to London’s ₹70,315, highlighting this persistent difference.
Silver: The Affordable Alternative
Silver, often called “the poor man’s gold,” has mirrored gold’s upward movement, though at a lower price point, making it more accessible to small investors. In Mumbai, the price jumped from an average of ₹38,404 per kilogram in 2018–19 to an average of ₹89,131 in 2024–25, while in New York, prices rose from ₹34,540 to ₹82,685 during the same period.
While silver lacks gold’s cultural prestige, it plays an essential role in industrial applications and affordable investment portfolios, especially for first-time investors.
The Gold-to-Silver Ratio
The gold-to-silver ratio helps investors compare the relative value of these metals by showing how much silver can be bought with the price of one kilogram of gold.
Using Mumbai’s 2024–25 data:
- Gold Price per kg: ₹75,84,187 (₹75,841.87 × 100)
- Silver Price per kg: ₹89,130.53
- Ratio: 75,84,187 ÷ 89,130.53 ≈ 85.09
This means 1 kilogram of gold is worth about 85 kilograms of silver. A higher ratio indicates that the price of gold is rising faster than silver, while a lower ratio suggests silver is catching up, making this metric useful for spotting market trends.
Why Does It Matter?
The steady rise in gold and silver prices, along with the widening domestic–international gap, highlights the importance of these metals as both cultural assets and financial tools. Understanding these trends helps investors and policymakers make informed decisions.
Key Numbers (Annual Averages 2018-19 and 2024-25)
Gold Mumbai Price (in ₹ per 10 grams):
2018-19: ₹31,193 → 2024-25: ₹75,842
Gold London Price (in ₹ per 10 grams):
2018-19: ₹28,380 → 2024-25: ₹70,315
Highest Gold Spread:
₹7,939.53 (2023-24)
Silver Mumbai Price (in ₹ per 1 kilogram):
2018-19: ₹38,404 → 2024-25: ₹89,131
Silver New York Price (in ₹ per 1 kilogram):
2018-19: ₹34,540 → 2024-25: ₹82,685
Gold-to-Silver Ratio (2024-25):
85.09
