Despite Prime Minister Narendra Modi’s appeal to the public not to buy gold, a rise in the prices of gold and silver was seen today on May 12. According to the India Bullion and Jewelers Association (IBJA), the price of one kilogram of silver rose by ₹11,620 to ₹2,67,820. Earlier, on Monday, its price was ₹2.56 lakh per kg. At the same time, the price of 10 grams of 24-carat gold increased by ₹1,592 to ₹1,51,954. Earlier, on May 11, its price was ₹1,50,362 per 10 grams.
This year gold became costlier by ₹ 18,000 and silver by ₹ 37,000
This year, gold and silver prices have seen continuous fluctuations. So far in 2026, the price of gold has increased by ₹18,755 and the price of silver has increased by ₹37,400. On December 31, 2025, the price of 10 grams of gold was ₹1.33 lakh, which has now increased to ₹1.52 lakh. Similarly, silver, which was priced at ₹2.30 lakh per kg, has now reached ₹2.68 lakh. During this period – specifically on January 29 – gold had touched its all-time high of ₹1.76 lakh, while silver had touched a record high of ₹3.86 lakh.
3 reasons for increase in gold prices
**Iran-Israel conflict:** Due to increasing tension in the Middle East, investors are withdrawing their money from the stock market and buying gold as a safe haven asset.
**Fall in Dollar:** Global demand for gold has increased due to the fall in the value of the US dollar in the international market. As a result, its prices have increased in the domestic market also.
**Wedding season and demand:** Wedding season is about to start in India. Due to this, there is a huge increase in the demand for gold among jewelers. **3 reasons for increase in silver prices**
**Increased Industrial Demand:** Silver is used extensively in the production of electric vehicles (EVs) and solar panels. Due to increase in global demand, silver prices have risen sharply.
**Low Inventory Problem:** Silver inventory stocks at major exchanges around the world have decreased. This has led to an increase in ‘short covering’ (intense buying activity).
**Impact of rising gold prices:** Generally, when gold prices reach record highs, volatility (changes in prices) in silver increases and investment in this metal increases.
Keep these 2 things in mind while buying gold from jewelers
1. **Buy only certified gold:** Always buy certified gold with the hallmark of Bureau of Indian Standards (BIS). This hallmark number is alphanumeric—meaning it can appear in a format like AZ4524. Hallmarking works to indicate the purity (carat value) of gold.
2. **Cross-check the price:** Verify the correct weight of the gold and its current market price on the day of purchase by cross-checking it with multiple sources (like the website of India Bullion and Jewelers Association). Gold prices vary depending on karat purity—typically for 24-karat, 22-karat, and 18-karat gold.
4 ways to identify real silver
**Magnet Test:** Real silver does not stick to a magnet. If it sticks to the magnet, it is fake.
**Ice Test:** Place a piece of ice on the silver. Ice melts very quickly on real silver.
**Smell Test:** Real silver has no smell. Fake silver often smells metallic, like copper.
**Cloth Test:** Rub the silver on a white cloth. If any black line or mark is formed on it, then it is genuine.
