Silver Hits Record High, Jumps 6% Above ₹2.54 Lakh/kg

On Monday, MCX March silver futures climbed to an all-time peak of ₹2,54,174 per kg, up sharply from recent levels and significantly above last year’s pricing. While international prices pulled back slightly later in the session, spot silver remained close to record levels near $80 per ounce after breaching over $83 per ounce earlier in trading.

The recent rally has been remarkable in scale. Over 2025, silver prices have soared more than 170% year-to-date in domestic terms, far outpacing many other asset classes and outperforming gold.

Key Drivers Behind The Rally

Here are some key parameters behind the increase in the silver price:

Industrial Demand Growth

The role of silver has expanded beyond its safe-haven status. Today, over half of global silver consumption is tied to industrial applications, notably:

• Solar energy, especially photovoltaics, is heavily dependent on silver. The industry uses this metal in panel manufacturing.

• Silver is also used extensively in electric vehicles (EVs), electronics, semiconductors, and data centres. The reason is its conductivity and thermal properties.

Analysts report that industrial demand, particularly from renewable energy infrastructure and high-growth technology sectors, is a major long-term price support factor.

Structural Deficits

The silver market has been facing a supply shortage for several years, with mine production struggling to keep up with growing global demand. As a result, the continuing deficit has eroded above-ground inventories and constrained the ability of supply to respond to price signals.

Also, export restrictions by China on silver, which are expected to begin in January 2026, will further worsen the ongoing supply pressure.

Monetary Policy

In the global market, experts are expecting an interest rate cut by the US Federal Reserve in 2026. If this happens, the US dollar could see a decline in its worth. As a result, the attractiveness of silver will increase and support higher prices.

ETF Flows

Ongoing geopolitical tensions, like conflicts in the Middle East, the Russia-Ukraine situation, and US sanctions on Venezuelan oil have made investors more cautious. Many are turning to safe-haven assets, and silver, being both useful for industry and a reliable store of value, has seen strong ETF investments and direct buying.

Impact on Related Markets

Asian stock markets and broader commodity indices have reacted to the increase in precious metal price:

• Precious metal equities, including major producers like Hindustan Zinc, saw share prices rise as silver’s record performance drove sector-wide interest.

• Gold and platinum also reached record levels in recent sessions, though silver’s percentage gains have been substantially higher.

In the short term, profit-booking and market swings have become common, with occasional dips from intraday highs showing strong speculative activity and quick position changes by traders.

Conclusion

Market experts place silver as the top performers of 2025, and it could go even higher in 2026 under the right conditions. Ongoing supply shortages and rising industrial demand could push prices to $90–$100 per ounce. Expectations of US rate cuts and steady ETF inflows add to the bullish outlook, though some warn that profit-taking and economic changes could cause ups and downs.

Sources:

Mint
Hans India
Financial Content
Reuters
The Guardian
ET