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Silver’s sharp rally follows gold’s record surge as inflation concerns drive demand for precious metals
Silver Price
Mcx Silver Price: Silver’s record-breaking run, making it one of the top-performing assets this year, shows little sign of easing as strong investor demand and persistent supply pressures continue to support prices. The white metal prices climbed to a fresh all-time high on Monday, extending their rally after gold scaled record levels.
On the Multi Commodity Exchange (MCX), silver March futures jumped 2.39 percent to trade at Rs 2,13,412 per kg around 9:15 am, after touching a new lifetime high of Rs 2,13,844 per kg earlier in the session.
Analysts believe silver could rise by a further 20 percent in the first quarter of 2026. Market experts expect silver to trade in the USD 70–80 per ounce range by March and recommend a “buy on dips” strategy at current levels. The metal has already gained over 127.5 percent so far in 2025.
Supply squeeze fuels rally
“Silver’s rally is being driven by tight physical supply in London and China, as rising exports to the US amid higher Comex premiums have created an imbalance or squeeze in the physical market,” said Riya Singh, research analyst at Emkay Global. She added that strong global demand for silver ETFs—backed by physical purchases—has further intensified supply constraints.
“A significant build-up of physical silver, driven by retail and high-net-worth individuals’ investments in ETF products, is now backed by nearly two years of global consumption demand,” said Pranav Mer, vice president – commodity and currency research at JM Financial Services.
Industrial demand adds strength
Silver’s sharp rally follows gold’s record surge as inflation concerns drive demand for precious metals. However, silver’s appeal goes beyond its role as a store of value. Its expanding use in solar panels, electric vehicles and AI-linked technologies—sectors seeing heavy investment—has added structural support to prices.
China supply curbs could tighten market
Upside drivers for silver are expected to strengthen further next year. Kaynat Chainwala, assistant vice president – commodity research at Kotak Securities, said China’s plan to restrict silver exports from 2026 could disrupt a key global supply source and tighten the market further.
Gains may moderate after 2025
Naveen Mathur, director – commodities and currencies at Anand Rathi Share and Stock Brokers, said the supply deficit is likely to persist through 2026–27, though gains may be more moderate than those seen in 2025. “Even so, silver could still outperform gold in the first quarter of 2026,” he said.
Near-term consolidation, volatility risks
Silver prices may remain subdued toward the end of the year. Mathur expects consolidation in the remaining sessions of 2025, with trading volumes staying light due to Christmas holidays and year-end closures in major markets.
Chainwala cautioned that silver’s inherent volatility warrants caution at current levels. “Any signs of a US recession or renewed concerns over an AI-led market bubble could trigger sharp pullbacks in prices,” she said.
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December 22, 2025, 09:57 IST
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