Silver prices continue their upward surge, hitting a record high of Rs 1,84,727 per kg on the Multi-Commodity Exchange (MCX) on Wednesday, following a Rs 3,126 jump in March contract prices. The metal has gained nearly 20 per cent in just one month, climbing from Rs 1,48,717, while the long-term growth remains steep, up 98 per cent in a year from Rs 89,913 to Rs 1,77,886, 133% in two years, and nearly 182% over three years. Over the past decade, silver prices have surged 419%. The white metal also reached a lifetime high of USD 59.65 per ounce on Wednesday in the international market.“Precious metals inched toward fresh highs on Wednesday as market participants reacted to key US economic data and rising geopolitical tensions,” Rahul Kalantri, Vice-President of Commodities of Mehta Equities Ltd, was quoted as saying by PTI.
What’s causing silver to hit record highs?
Maneesh Sharma, AVP of Commodities & Currencies at Anand Rathi Share and Stock Brokers Limited, said that in addition to the possibility of a Fed rate cut, inflows into bullion-backed exchange-traded funds and continued supply tightness have further driven up silver prices.“Silver ETFs tracked by Bloomberg have recorded inflows of around 290 tons in last week, which led to a withdrawal of supply from the market and is also likely contributed to the price increase last week,” Sharma is quoted as saying by ET.Sharma noted that silver’s new high comes just over a month after a severe supply squeeze in London, the dominant trading hub, in October, which pushed prices higher in Shanghai and New York. “While the arrival of nearly 54 million troy ounces has eased that squeeze, the market still remains markedly tight with the cost of borrowing the metal over one month hovering above its normal level.”He added that, besides strong global sentiment, a weakening rupee to around Rs 90 in the spot market has also supported domestic silver prices, with MCX futures remaining firm.Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, said the recent surge to record silver prices reflects a rare convergence of global macroeconomic factors, structural supply constraints, and strong industrial demand.“With silver prices crossing Rs 1.78 lakh/kg, the rally is being fuelled by expectations of imminent interest-rate cuts by the Federal Reserve and tight global inventories that show little sign of loosening. At the same time, growing demand from solar-energy, electronics and other green-technology sectors is turning silver into more than just a ‘safe-haven’ metal,” Kamboj said, as cited by ET.
Is now the right time to invest in silver?
Kamboj suggests that while existing investors may consider locking in their gains, maintaining some exposure could be beneficial if the structural supply shortage continues.“New investors can invest gradually, in small phases, to benefit from any future growth while avoiding the risk of entering during a sudden price spike,” Kamboj said. Sharma noted that the long-term outlook for silver prices remains positive, though volatility is expected ahead of potential US labour market data and the US Fed meeting scheduled for December 10, 2025.He added that optimism over a potential Russia–Ukraine peace deal, along with tight global supply and strong industrial demand, could push silver prices to $65–$67 in the first half of 2026.Naveent Damani, Head of Research for Commodities at Motilal Oswal Financial Services Ltd, said the record silver prices are primarily driven by strong demand and constrained supply. He advised investors to buy silver gradually, in a staggered manner.“Corrections would come in and will provide buying opportunities. So buy silver in a staggered manner. One could look to start investing in any 3-8 per cent correction and start investing in a staggered manner,” Damani said. (Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
About the Author
