Silver prices cross ₹2 lakh per kg for the first time: What's driving the rally

Silver prices surged to a new all-time high on Friday (December 12), crossing the ₹2 lakh-per-kg mark in futures trade for the first time, supported by strong investor interest, tight global supply conditions and broad strength across industrial metals.

In the international market, Comex silver futures touched a fresh peak of $64.74 per ounce, extending this year’s sharp upward trend.

Analysts attributed the rally to a persistent global supply deficit, rising industrial consumption, and supportive global cues.

According to Axis Mutual Fund’s Gold and Silver Outlook, silver has been one of the strongest-performing commodities of 2025, benefiting from accelerating demand from sectors such as solar energy, electric vehicles, semiconductors, and other clean-energy technologies.

The report noted that industrial consumption continues to outpace mine supply, creating a structural deficit that has tightened inventories and boosted prices. Investor rotation into commodities and strength in other metals have additionally lifted sentiment.

Market experts said the surge in silver is also riding on factors

that have supported gold this year, including a weaker dollar, expectations of further US rate cuts, and heightened geopolitical uncertainty. However, silver outperformed gold due to its dual role as a precious and industrial metal.

While the near-term outlook remains positive, analysts cautioned that a rebound in real yields or easing inflation in 2026 could moderate price momentum. For now, the metal continues to benefit from tight supply conditions and broad-based interest from both industrial users and investors.