Silver Prices Surge to Record Rs 1.84 Lakh per Kg on MCX Amid Global Geopolitical Tensions
Silver prices have reached a historic peak, soaring to Rs 1,84,727 per kilogram on the Multi-Commodity Exchange (MCX) this Wednesday. This surge marks a significant increase of Rs 3,126 in the March contract prices, contributing to a nearly 20% rise in just one month. Over the past year, silver has appreciated by an impressive 98%, while its value has skyrocketed by 419% over the last decade. In the international market, silver also achieved a record high of USD 59.65 per ounce. Analysts attribute this remarkable growth to a combination of economic factors and geopolitical tensions.
Factors Driving the Surge in Silver Prices
Several factors are contributing to the unprecedented rise in silver prices. Maneesh Sharma, Assistant Vice President of Commodities & Currencies at Anand Rathi Share and Stock Brokers Limited, highlighted that expectations of a Federal Reserve rate cut, along with significant inflows into bullion-backed exchange-traded funds (ETFs), have played a crucial role. Inflows into silver ETFs tracked by Bloomberg reached approximately 290 tons last week, which has tightened supply in the market and contributed to the recent price increase.
Sharma also noted that a severe supply squeeze in London, a major trading hub, had previously pushed prices higher in other markets like Shanghai and New York. Although the arrival of nearly 54 million troy ounces has alleviated some of that pressure, the market remains tight, with borrowing costs for silver still elevated. Additionally, a weakening rupee, which has recently hovered around Rs 90 in the spot market, has further supported domestic silver prices, keeping MCX futures robust.
Investment Insights Amid Rising Prices
As silver prices continue to climb, investors are weighing their options. Aksha Kamboj, Vice President of the India Bullion & Jewellers Association, suggests that the current surge reflects a unique convergence of global economic factors, structural supply constraints, and robust industrial demand. With silver prices surpassing Rs 1.78 lakh per kilogram, Kamboj emphasizes that the rally is fueled by anticipated interest rate cuts by the Federal Reserve and tight global inventories.
For existing investors, Kamboj recommends locking in gains while maintaining some exposure to silver, given the ongoing supply shortages. New investors are advised to enter the market gradually, investing in small phases to mitigate the risks associated with sudden price spikes. Sharma echoes this sentiment, noting that the long-term outlook for silver remains positive, despite expected volatility leading up to key US labor market data and the Federal Reserve meeting scheduled for December 10, 2025.
Future Projections for Silver Prices
Looking ahead, experts predict that silver prices could continue to rise. Naveent Damani, Head of Research for Commodities at Motilal Oswal Financial Services, attributes the record prices primarily to strong demand coupled with constrained supply. He advises investors to adopt a staggered approach to buying silver, suggesting that corrections in prices will present opportunities for investment.
Damani anticipates that optimism surrounding a potential peace deal between Russia and Ukraine, along with tight global supply and strong industrial demand, could push silver prices to between $65 and $67 in the first half of 2026. As the market evolves, investors are encouraged to stay informed and consider strategic entry points to capitalize on future growth in silver.
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