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Silver prices on the Multi Commodity Exchange (MCX) surged to an all-time high of Rs 1.06 lakh per kilogram on June 17, gaining nearly 9 per cent over the past week. The rally comes amid heightened geopolitical tensions, particularly the Israel-Iran conflict, and sustained optimism around industrial demand from clean energy sectors.
What’s fuelling silver’s record run?
The surge in silver is being driven by two key factors — rising safe-haven demand amid global conflicts and strong industrial usage in solar panels, electronics, and electric vehicles. Analysts say investors are increasingly flocking to precious metals like silver and gold to hedge against geopolitical risk and inflation.
“Silver has a dual nature — it’s both a precious and industrial metal. The current surge is supported by strong physical demand and supply constraints, especially from Latin American mines,” said Kunal Shah, Head of Commodities at Nirmal Bang.
Domestic demand adds to momentum
India's festive and wedding season has also seen robust demand for silver jewellery and artefacts. Meanwhile, the government's push for renewable energy and infrastructure is likely to increase silver’s long-term consumption.
Jewellers and bullion dealers report rising interest from retail investors. “Silver has become the affordable alternative to gold for many retail buyers, and this demand has also contributed to prices rising steadily,” said a Mumbai-based bullion trader.
MCX silver rises 30% YTD
Silver has given stellar returns so far in 2025. On a year-to-date basis, silver prices have jumped over 30 per cent on the MCX. The metal has outperformed gold in recent weeks, which is up around 15 per cent in the same period.
In international markets, silver is trading near $32 per ounce — its highest level since 2012 — with analysts expecting further upside if global uncertainties persist.
What should investors do now?
Despite the rally, experts warn against aggressive fresh positions at current levels. “Prices are overheated and a technical correction cannot be ruled out. Investors should consider entering only on dips with a long-term horizon,” Shah added.
Traders are advised to keep a close watch on global cues, US Fed commentary, and dollar movement in the coming weeks. The next resistance for silver is seen at Rs 1.08 lakh, while support lies at Rs 1.03 lakh/kg.
Outlook remains bullish, but caution advised
While the long-term outlook remains positive due to growing green tech adoption and constrained mine supply, volatility is likely to remain high. Analysts suggest staggered buying and diversification to mitigate risk.
Silver's latest breakout has once again placed it on the radar of retail and institutional investors. Whether it can sustain above Rs 1.06 lakh or face profit booking remains to be seen, but one thing is clear — silver is no longer playing second fiddle to gold.
English (US) ·