Silver prices delivered a spectacular performance on Monday, climbing to a lifetime peak, fueled by robust demand and a powerful global rally across precious metals. The surge marks one of the white metal's strongest annual showings in recent memory.
Record-Breaking Rally on Domestic and Global Fronts
On the Multi-Commodity Exchange (MCX), silver futures for December delivery skyrocketed to an unprecedented high of Rs 2,14,534 per kilogram. This milestone was mirrored in international markets, where spot silver gained 2.2% to touch a record $68.65 per ounce. The concurrent rally in gold, which also reached a new peak of $4,380 per ounce, provided additional tailwinds for silver.
Key Drivers Behind the Meteoric Rise
Market experts point to a powerful confluence of factors propelling silver's glittering ascent. Jigar Trivedi, Senior Research Analyst at Reliance Securities, identified strong central bank purchases and consistent inflows into silver Exchange-Traded Funds (ETFs) as primary supports. He added that expectations of further interest rate cuts in the United States and escalating geopolitical tensions are creating a favorable environment for precious metals.
Analysts at Tata Mutual Fund highlighted a critical physical shortage of the metal. They cited booming demand from the solar industry, strong import figures from India, and sustained ETF investments as major catalysts. The supply side is facing significant pressure, exacerbated by recent export restrictions from China, a top global exporter, and the metal's recent designation as a "critical mineral" by the US government.
Outlook and Expert Targets for Year-End
With only two weeks left in 2025, the market's momentum is under intense scrutiny. Analysts are increasingly confident that silver has more room to run. Jigar Trivedi has pegged a realistic year-end target of Rs 2,25,000 per kg for MCX silver, contingent on positive global cues.
Ponmudi R, CEO of Enrich Money, noted that silver is outperforming other precious metals. He stated that COMEX silver has also scaled fresh all-time highs. "Silver’s strength is being driven by rising industrial demand from solar power, electric vehicles, and electronics, combined with persistent global supply deficits," Ponmudi explained. He also observed a significant pick-up in investor participation, as silver offers leveraged exposure to the broader precious metals cycle.
The ongoing rally underscores silver's dual appeal as both a precious metal for investment and a critical industrial commodity. The combination of financial demand and structural supply challenges suggests the current momentum could extend into the new year.
