Silver prices continue their unstoppable rally, setting fresh record highs with each trading session. The metal's unique position as both a precious and industrial commodity gives it an edge over gold, making its shine even brighter.
Silver Futures Reach Historic Peak
After jumping ₹22,153 per kilogram on Monday, silver March delivery futures contracts gained further strength on Tuesday, January 20. They spiked another ₹17,723 to hit a historic peak of ₹3,27,998. This remarkable surge brings month-to-date returns to an impressive 36%.
Global Tensions Fuel Safe-Haven Demand
Renewed global trade tensions are boosting demand for both gold and silver as safe-haven assets. Heightening geopolitical issues in Europe are pushing investors to diversify away from risky investments.
Recent developments show Denmark increasing its military presence in Greenland. This comes after US President Donald Trump refused to rule out using force to secure control of the island.
Trump has threatened to impose additional import tariffs on eight European countries starting February 1. These tariffs would begin at 10% and rise to 25% in June unless a deal is reached regarding Greenland. The affected countries include Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland.
European leaders quickly criticized this move. They are now prepared to halt approval of last year's trade agreement. French President Emmanuel Macron may request activation of the EU's anti-coercion instrument, the bloc's most powerful trade retaliation tool.
These revived tariff concerns impact global markets that had reached new highs in 2025, largely driven by artificial intelligence optimism.
Industrial Demand Creates Structural Deficit
Beyond trade and geopolitical factors, silver faces strong industrial demand. Its usage in solar panels, electric vehicles, and other technologies keeps the metal in structural deficit for five consecutive years, according to a Motilal Oswal report.
The brokerage notes industrial demand reached its second-highest level on record in 2025. This growth comes from solar photovoltaic installations, electrification projects, electric vehicle production, and grid infrastructure investments.
Demand now exceeds what miners can produce. Above-ground stockpiles are being drained to meet this need. As reserves shrink, physical silver holders demand increasingly higher prices to part with their metal.
Rapid Price Acceleration
Strong investment inflows and rising industrial demand have propelled silver prices upward at a record-breaking pace.
Silver crossed the ₹1 lakh mark on MCX in October 2024. It took fourteen months to reach ₹2 lakh on December 12, 2025. However, the next ₹1 lakh jump happened much faster. Silver hit ₹3 lakh in just twenty-five trading sessions during Monday's session on January 19.
Analysts Predict Further Gains
Market experts expect the rally to continue, with prices potentially reaching ₹3.50 lakh.
Ponmudi R, CEO of Enrich Money, shares his analysis. "Sustained trade above ₹3,10,000 keeps the momentum extremely bullish. The next major upside targets are placed at ₹3,20,000–₹3,25,000 in the near term. There is scope to extend toward ₹3,35,000–₹3,50,000 over the next few months. Any dip toward ₹3,05,000–₹3,08,000 should be viewed as a strong buying opportunity."
Disclaimer: This story is for educational purposes only. The views and recommendations above belong to individual analysts or broking companies, not Mint. Investors should consult certified experts before making any investment decisions.
