Silver continues to trade at prices significantly above global spot in China and India. Even the recent decline in precious metals prices has not eliminated these reported price differences.
Our Gold & Silver Price Tracker for China and India shows:
- 🇨🇳 China: +12.7% – the weekly average premium over Western spot.
- 🇮🇳 India: nearly +18% – the more recent MCX silver price compared with global spot.
Both figures remain substantially above international benchmark prices. However, understanding what drives these differences is essential.
China’s silver price includes 13% VAT, which explains most of the reported premium. In India, import duties, taxes, and domestic market conditions also influence prices.
A high premium over spot does not automatically mean an equally large premium caused by a shortage of physical silver.
Nevertheless, the persistence of such substantial price differences across two major Asian markets deserves attention.
In India, according to Reuters, local dealer premiums over domestic benchmark prices recently fell from $2.50 to just $0.45 per ounce. Yet MCX silver prices remain significantly above global spot.
These are two different measures, and they can move in different directions.
China’s reported premium represents a weekly average, while India’s is based on more recent prices. Comparing the two percentages directly can therefore be misleading.
Our main observation is that the gaps between Asian silver benchmarks and global spot prices remain elevated. To determine whether these differences reflect growing physical-market tightness, however, we also need to monitor premiums after accounting for taxes and other costs.
The headline figures reveal substantial regional price differences. A closer examination of their underlying drivers tells us what those differences actually mean for the silver market.
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