New Delhi: Silver prices rallied over 15 per cent last week to scale a fresh record high of Rs 2.42 lakh per kg in the futures market, driven by strong
industrial demand, expectations of US interest rate cuts next year and mounting concerns over supply disruptions.
The rally in the domestic market mirrored the white metal’s record run in global markets, where it hit an all-time high of USD 79.70 per ounce, surging over 11 per cent in a single day on Friday. Rising for the fifth consecutive day on MCX, silver futures for March 2026 delivery zoomed by Rs 18,210, or 8.14 per cent, to touch a new record of Rs 2,42,000 per kilogram, before settling at Rs 2,39,787 per kg on Friday.
In a holiday-shortened week, the white metal soared by Rs 31,348, or 15.04 per cent, from Rs 2,08,439 per kilogram, since December 19, reflecting aggressive buying by traders amid heightened volatility. During the calendar year, silver prices have delivered stellar returns, rising by Rs 1,52,554, or nearly 175 per cent, from Rs 87,233 per kg, recorded on December 31, 2024.
“Silver is no longer trading merely as a precious metal like gold. Its indispensable role in high-performance technology, combined with shrinking above-ground stocks and non-negotiable industrial demand, is reshaping its fundamentals,” Rahul Kalantri, VP, Commodities at Mehta Equities, told PTI.
Meanwhile, silver futures have breached the USD 79 per ounce mark for the first time on the Comex. The March 2026 contract surged USD 8.02, or 11.2 per cent, to hit a record of USD 79.70 per ounce, before finishing at USD 77.19 in the overseas trade.
Kalantri further stated that prices have remained well supported by a combination of strong industrial consumption, consistent exchange-traded fund (ETF) inflows, healthy physical demand, and increased capital rotation from equities into commodities.
“As a result, silver is structurally decoupling from gold. We believe silver offers a better investment opportunity for 2026, given its strong structural drivers,” Kalantri said.
Over the past week, the white metal has climbed by USD 9.71, or 14.4 per cent. So far this year, silver prices have soared by USD 47.95, or 164 per cent, from USD 29.24 per ounce recorded on December 31, 2024.
Commodities market experts attributed the surge in silver prices to tightening global supplies, particularly in China, the world’s largest consumer of the metal. China is a leading producer of solar panels, electronics and electric vehicles.
Analysts said that Beijing has announced export restrictions on silver starting from January 1, 2026, requiring companies to apply for licences, a move expected to remain in place through 2027, and potentially disrupt global supply chains.
On the outlook, Jigar Trivedi, Senior Research Analyst at Reliance Securities, said industrial demand may outpace supply further, while a weak dollar and rising safe-haven demand could push Comex silver prices towards USD 100 per ounce in 2026.
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