Silver prices in India have skyrocketed to an unprecedented peak, marking a historic rally fueled by a potent mix of industrial demand, global supply fears, and macroeconomic shifts. In a stunning surge, the white metal's futures price vaulted past the ₹2.42 lakh per kilogram mark last week, setting a fresh all-time high and dazzling investors and traders alike.
Historic Rally: A Week of Spectacular Gains
The rally was nothing short of spectacular. In the holiday-shortened week ending Friday, silver futures for March 2026 delivery on the Multi Commodity Exchange (MCX) witnessed aggressive buying. The price catapulted by a staggering ₹31,348, or 15.04%, from its level of ₹2,08,439 per kg on December 19. The session on Friday alone saw the contract jump ₹18,210, or 8.14%, to touch a new peak of ₹2,42,000 per kg before settling at ₹2,39,787 per kg.
This surge represents the fifth consecutive session of gains for the metal on the MCX. Zooming out, the performance for the calendar year 2024 has been exceptional. Silver has rocketed by ₹1,52,554 per kg, translating to a near 175% gain from its price of ₹87,233 per kg recorded on December 31, 2023.
What's Fueling the Silver Frenzy?
Commodity market experts point to a convergence of powerful fundamental factors driving this relentless uptrend. A primary catalyst is the tightening global supply, particularly from China. As the world's largest consumer of silver and a major manufacturing hub for solar panels, electronics, and electric vehicles, China's policies have a massive impact.
Analysts highlight that Beijing has announced export curbs on silver, effective January 1, 2026. Under these restrictions, companies will require licenses to export, and the measures are expected to remain until 2027. This move has sparked significant concerns over potential disruptions to global supply chains, prompting pre-emptive buying.
Additionally, robust industrial demand continues to underpin prices. Expectations of interest rate cuts in the United States next year, which typically weaken the US dollar and make dollar-priced commodities like silver cheaper for holders of other currencies, have also provided strong support to the bullish sentiment.
Expert Outlook and Price Targets
Ponmudi R, CEO of Enrich Money, provided a technical and fundamental perspective. "MCX Silver extended its sharp advance to ₹2,40,935 per kg, registering a steep rise of nearly ₹30,000 over the past week and scaling fresh lifetime highs in line with global cues and supply constraints," he stated.
He added, "The broader rising channel continues to support the move, reinforcing the strength of the trend. Immediate support is placed at ₹2,23,000– ₹2,20,000, which is likely to attract buying interest on any correction. A sustained hold above ₹2,40,000 could accelerate the rally toward ₹2,50,000– ₹2,60,000 in the coming months. Strong fundamentals, including rising industrial demand combined with persistent supply deficits, continue to favour a buy-on-dips approach into 2026."
Silver Rate Today in Major Indian Cities
In the physical retail market, prices closely tracked the futures rally. Here are the silver rates for 1 kg bars in major Indian cities as of today (source: bullions.co.in):
- Delhi: ₹2,40,150
- Mumbai: ₹2,40,570
- Chennai: ₹2,41,270
- Kolkata: ₹2,40,250
- Bengaluru: ₹2,40,760
- Hyderabad: ₹2,40,950
- Jaipur: ₹2,40,540
For smaller denominations in Delhi, the rate for a 10 gm coin stood at ₹2,161, while a 100 gm coin was priced at ₹24,614. The market remains volatile, with traders closely watching international cues, the strength of the US dollar, and any further developments regarding global supply, especially from China, for future direction.
