Silver Makes Spectacular 2026 Debut with 35% Surge
Silver started 2026 with a bang. The precious metal jumped more than 35% in its debut. That equals a gain of nearly Rs 85,000 per kilogram. Investors are rushing toward silver. They see tightening supplies and rising geopolitical tensions as key drivers.
Prices Break Through Key Milestone
The white metal gained strong momentum. MCX silver futures decisively crossed the Rs 3 lakh per kg milestone. During the latest trading session, prices advanced by more than 2.5%. They rose nearly Rs 8,000 to settle at Rs 3,19,949 per kg.
This fresh uptick followed renewed strains between the United States and the European Union. US President Donald Trump threatened to acquire Greenland. He also talked about imposing punitive tariffs on Europe. These developments added fuel to the rally.
What Market Experts Are Saying
Aamir Makda, commodity and currency analyst at Choice Broking, shared his views. He told ET that silver at $94 per troy ounce was once considered unthinkable. Now, it is driven by a perfect storm of industrial scarcity and geopolitical shifts.
Looking at technical charts, Makda expects further upward momentum. He said immediate support would be at the 20-DEMA level placed at Rs 255,100. However, Makda flagged early signs of fatigue in the rally.
He explained that in recent sessions, a bearish RSI divergence has emerged. This is a classic red flag warning. While prices are making new highs, the underlying momentum is weakening.
Makda also highlighted a drop in open interest. It fell to 9,850 lots in the March contract even as prices climbed. This indicates long unwinding in silver. Traders holding long positions should consider booking profits at current levels, he advised.
Consolidation Phase Possible
Jigar Trivedi, senior analyst at Reliance Securities, offered another perspective. He said the market may now enter a phase of time-based consolidation.
Trivedi acknowledged the possibility of near-term consolidation. But he said the prevailing political and geopolitical environment could still push prices higher. They might potentially move toward the psychological level of $100 per ounce.
He noted that the broader international trend remains firmly bullish. However, the risk–reward equation currently stands evenly balanced at 1:1. This follows the sharp rise over the past 13–14 months.
In rupee terms, Trivedi identified Rs 3,30,000 per kg as the next important resistance.
Long-Term Structural Trend
From an investment lens, the recent breakout is part of a longer-term structural trend. It is not just a short-lived spike.
Justin Khoo, Senior Market Analyst at VT Market, explained the move. He said it is supported by supply constraints and strong industrial demand. This demand comes particularly from solar energy, electronics, and electric vehicle segments.
Elevated prices increase volatility, Khoo noted. He said investors should focus on strategic positioning instead of chasing record highs.
Tactical profit-taking may suit short-term traders. But for long-term investors, silver continues to act as a hedge against inflation and market uncertainty.
Khoo added that the broader approach should be to buy on meaningful declines. Investors should maintain core holdings. Risk management remains central.
Although the trend still points to further upside, disciplined entry and exit strategies are increasingly important at current levels.
Investment Strategies for Different Investors
Akshat Garg, head of research and product at Choice Wealth, gave specific advice. He said new investors could consider silver ETFs. These can be part of a diversified multi-asset portfolio to tap into the metal’s structural strengths.
Existing investors should avoid exiting at current levels, Garg said. The underlying support remains intact.
Garg further added that new investors should allocate 5–10% to silver and gold ETFs within a broader portfolio. They should view this exposure as diversification rather than a momentum-driven trade.
Existing holders should remain invested through volatility. Institutional flows, ETF participation, and long-term fundamentals continue to provide support through 2026.
Silver’s Dual Identity
Analysts also point to silver’s dual identity. It acts as both a monetary hedge and an industrial commodity.
More than half of demand now comes from sectors like solar power, electric vehicles, data centers, and electrification. Supply is constrained by limited mine output and recycling. This keeps the market tight.
This structure positions silver to potentially outperform gold during growth phases. It still offers protection during volatile periods.
Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
