MUMBAI, Jan. 19 -- Even as silver surged to a record high of $93.22, or Rs.9,412, an ounce (31.10 grams) in overseas markets, the Indian physical market saw the white metal trading at a discount of Rs.10,000 per kg to the landed cost, as demand slowed at historic price levels, trade participants said.

"There is a Rs.10,000 per kilo (kg) discount for bars prevailing in the physical market here," said Surendra Mehta, national secretary India Bullion and Jewellers Association (IBJA), whose gold rates are used by the Reserve Bank of India (RBI) to redeem sovereign gold bonds.

Against a costing of Rs.302,628 per kg, a bullion dealer was selling silver at Rs.292,628 in the Mumbai market, Mehta said.

The most active silver futures contract on...