Silver Prices Soar to Record Rs 2.36 Lakh/kg in Delhi as Global Rates Exceed $75 an Ounce
Silver prices surged to unprecedented levels in both domestic and international markets on Friday, fueled by robust global trends and thin trading volumes typical of the year-end period. The All India Sarafa Association reported that in the national capital, silver prices jumped by Rs 9,350, reaching a record Rs 2,36,350 per kilogram. This marks a significant increase from Rs 2,27,000 per kilogram in the previous session. Over the last four trading days, silver has gained Rs 32,250, or 15.8%, from Rs 2,04,100 per kilogram on December 19. In addition, gold also saw a rise, reaching a new high of Rs 1,42,300 per 10 grams.
Domestic Silver Prices Reach New Heights
In the domestic market, silver’s remarkable climb has been a highlight of the trading week. The metal’s price increase of Rs 9,350 on Friday brought it to a record Rs 2,36,350 per kilogram. This surge is part of a broader trend, as silver has gained Rs 32,250 over the past four trading sessions alone. The increase represents a 15.8% rise from Rs 2,04,100 per kilogram recorded on December 19. For the entire calendar year, silver has seen an impressive increase of Rs 1,46,650, or 163.5%, from Rs 89,700 per kilogram at the end of 2024. Analysts attribute this rally to a combination of global market cues and seasonal trading patterns.
Gold Prices Also on the Rise
Gold prices have mirrored the upward trend seen in silver, with the precious metal of 99.9% purity climbing by Rs 1,500 to reach a new lifetime high of Rs 1,42,300 per 10 grams. This increase is notable when compared to Rs 1,40,800 per 10 grams in the previous session. Year-to-date, gold has gained Rs 63,350, or 80.24%, from Rs 78,950 per 10 grams at the end of 2024. Saumil Gandhi, a Senior Analyst at HDFC Securities, noted that the rally in precious metals continued strongly on the last trading day of the week, with both gold and silver achieving record highs.
International Market Trends
In international markets, gold also reached new heights, with benchmark spot gold rising by $50.87, or 1.13%, to a record $4,530.42 per ounce. This surge is attributed to expectations of a Federal Reserve rate cut and a generally positive sentiment in the commodities market. Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, explained that thin trading conditions due to the holiday season have amplified price movements. Silver followed suit, with spot silver climbing $3.72, or 5.18%, to a new high of $75.63 per ounce, breaking the $75 per ounce barrier for the first time.
Factors Supporting Silver’s Growth
Analysts have identified several structural factors contributing to the rise in silver prices. Jigar Trivedi, a Senior Research Analyst at Reliance Securities, highlighted a multi-year supply deficit, with global mine output failing to keep pace with demand and declining above-ground inventories. He emphasized that this structural tightness in the physical market could lead to even higher prices if deficits worsen. Additionally, silver’s importance in various sectors, including solar panels, electric vehicles, and clean technology, further supports its value. Trivedi also noted that a weak U.S. dollar and increasing demand for safe-haven assets could push silver prices toward $100 per ounce by 2026.
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