Silver Price Today Hits Fresh Record High: Silver prices surged to new all-time highs on Wednesday, December 17, rallying more than 4 percent on the MCX and extending a sharp breakout that has drawn global
attention. The surge followed weaker US labour data, which revived expectations of interest-rate cuts by the Federal Reserve, pressured the dollar, and lifted demand for precious metals.
Around 9:20 am, MCX silver jumped 3.38 percent to Rs 2,04,445 per kg, touching a lifetime high. In contrast, MCX gold (February) slipped 0.21 percent to Rs 1,34,129 per 10 grams, highlighting a divergence between the two precious metals.
Global silver tops $65 for the first time
In international markets, spot silver climbed 2.8 percent to a record $65.63 an ounce, marking the first-ever move above the $65 level. Spot gold, meanwhile, edged 0.4 percent higher to $4,321.56 an ounce by 0230 GMT, supported by a weaker US dollar.
The rally was underpinned by US data showing the unemployment rate rose to 4.6 percent in November, strengthening expectations of further monetary easing. A softer labour market, combined with the Federal Reserve’s dovish stance following its final quarter-point rate cut of the year, boosted demand for non-yielding assets such as silver.
Geopolitical tensions add to safe-haven demand
Geopolitical risks also played a role in the rally. US President Donald Trump ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, intensifying pressure on President Nicolas Maduro amid rising military activity in the region. This escalation lifted safe-haven buying and added momentum to silver prices.
A currency trader based in Singapore said the unemployment data had clearly supported precious metals and weakened the dollar, prompting investors to seek alternative asset classes as a hedge against risk.
The dollar index hovered near a two-month low, making dollar-priced bullion more attractive to overseas buyers.
Is it the right time to buy silver? Experts weigh in
Silver’s sharp rally has left investors debating whether this is the right time to enter the market. Analysts remain divided, though many agree silver’s dual role as both a precious and industrial metal gives it a unique edge in the current macro environment.
Rajkumar Subramanian, Head – Product & Family Office at PL Wealth, said silver is increasingly emerging as a strategic diversifier for Indian investors. He noted that while silver carries higher volatility than gold, it also offers significantly greater upside during commodity upcycles, driven by rising industrial demand and growing retail participation. According to him, demand in India is being fuelled by solar manufacturing, electric vehicles, electronics and digital infrastructure.
Caution advised despite strong fundamentals
Taking a more cautious stance, Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, said silver’s strong run may be nearing exhaustion. He pointed out that while silver has already delivered robust returns, rising yields and expectations of higher inflation could see gold outperform silver over the medium term. Investors building exposure to precious metals, he said, may be better served prioritising gold at this stage.
Long-term outlook remains supportive
Despite near-term caution, long-term structural factors continue to support silver. NS Ramaswamy, Head of Commodity & CRM at Ventura, said supply tightness and shifting demand dynamics could push prices much higher. He noted that silver could potentially rally to $100 an ounce—around Rs 3 lakh per kg—but warned that the metal is known for sharp rallies followed by steep corrections. He added that a catch-up in supply would signal “Peak Silver”.
Ramaswamy also highlighted silver’s growing role as a “next-generation metal”, driven by rising usage in electronics, renewable energy, artificial intelligence, data centres and electric vehicles, along with its inclusion in the US critical mineral list.
