Silver Shines Bright with 200% Rally, Nearing ₹3 Lakh Milestone
Investors are flocking to silver with growing enthusiasm. This rising interest keeps pushing the white metal's prices higher. Silver has now become the best performer among all major asset classes.
Metallic Momentum Builds Through 2025
After an explosive 170% rally in MCX silver prices, the momentum has not slowed down. Prices jumped another 22% in January alone. Starting from an April close of ₹95,917, silver has surged 200% to reach ₹2,87,762 by Friday. This remarkable climb mirrors the performance of a multibagger stock.
Silver prices keep setting new records. They hit a fresh peak of ₹2,92,960 last week. Analysts are quickly adjusting their target prices upward. The metal has blown past their earlier forecasts much faster than anyone predicted. This rapid movement shows demand is accelerating beyond expectations.
Brokerage Forecasts Proved Too Conservative
Domestic brokerage firm Motilal Oswal provides a clear example. Last year, they expected silver rates to reach ₹1,10,000 by year-end. The market crossed those levels in the first half itself. Prices eventually climbed to ₹2,54,000. This outcome more than doubled the brokerage's original target.
Structural Deficit Drives the Market
Silver possesses a dual character. Industries use it extensively, while investors treat it as a precious metal. This combination has created a structural deficit for five straight years. Demand from industry, investment, and manufacturing now outpaces what miners can produce.
The situation is draining existing above-ground stockpiles to meet current needs. As these reserves diminish, physical silver holders demand increasingly higher prices to sell their metal.
A Surprise Star Emerges in 2025
At the beginning of 2025, silver was not on most investors' radar. Few expected the metal to take center stage. Its sharp rally emerged in a year marked by significant economic and geopolitical worries.
Global central banks are adding another layer of demand. After accumulating large gold quantities over three years, they seem to be shifting focus. Recent reports indicate central banks have started putting silver in their vaults alongside gold. This new buying pressure helps keep MCX silver prices hovering near the ₹3 lakh mark.
Experts See Strong Fundamentals Behind the Rally
Ponmudi R, CEO of Enrich Money, explains the broader precious metals rally. He says structural factors, not speculative excess, support the move. He points to several key drivers:
- Chronic supply shortages, especially in silver
- Sustained central bank purchases of gold
- Accelerating demand from green energy, EVs, AI, and electronics
- Ongoing macroeconomic and geopolitical uncertainties
These elements continue to fuel a long-term bullish story. Ponmudi notes recent price corrections stem from position unwinding and dollar strength. The underlying fundamentals have not deteriorated. A gradually firming USD/INR exchange rate further supports rupee-denominated metal prices.
He acknowledges near-term volatility may persist. Profit-taking, dollar movements, and key US data could cause swings. However, he expects any corrective phases to remain shallow. These dips will likely attract fresh buying interest.
Ponmudi highlights silver's unique position. It offers relative outperformance potential due to higher industrial leverage. Gold, meanwhile, remains a reliable hedge against macro and geopolitical uncertainty.
Will Silver Cross the ₹3 Lakh Threshold?
The latest close at ₹2,87,762 puts silver just 4.2% away from the ₹3 lakh milestone. Analysts believe this level could be reached soon, despite some recent pullback in prices.
Ponmudi provides a specific outlook. He expects silver prices to touch ₹3,20,000 if they stay above ₹2,95,000. He adds, "MCX Silver continues to respect its bullish channel structure after consolidation. The ₹2,83,000–₹2,80,000 zone acts as strong support. A sustained move above ₹2,95,000 could accelerate prices toward ₹3,05,000–₹3,20,000."
Given the persistent supply gaps and rising industrial demand, the broader market setup favors aggressive dip-buying strategies. The rally appears built on solid ground, not fleeting speculation.
Disclaimer: This story is for educational purposes only. The views and recommendations are those of individual analysts or broking companies. We advise investors to consult certified experts before making any investment decisions.
