Silver prices are on a record-breaking run, reflecting strong global demand and heightened investor interest. In a historic milestone, silver futures in India crossed the ₹3 lakh per kilogram mark for the first time, underlining the growing appeal of the precious metal as both an investment and industrial commodity.
Silver Futures Cross ₹3 Lakh Mark
In futures trading, the March delivery silver contract surged sharply in a single session. Prices jumped by ₹13,553 per kg to settle at ₹3,01,315, marking an all-time high. This steep rise highlights the strong momentum that silver has maintained in recent months.
Meanwhile, the international market also witnessed a significant rally. Silver prices climbed to a record $94.35 per ounce, driven by robust global demand and macroeconomic factors that continue to support precious metals.
Sharp Rise Since Last Year
The current surge becomes even more notable when compared with last year’s levels. As of December 31, silver was trading around ₹2.35 lakh per kg. In 2026 alone, prices have risen by nearly ₹66,000 per kg, signaling sustained bullish sentiment in the market.
Alongside silver, gold prices have also remained firm. In Hyderabad, the price of 24-carat gold touched ₹1,49,480 for 10 grams, reflecting increased buying interest amid global uncertainty.
Global Factors Fueling the Rally
Several international factors are working in favor of silver prices. To begin with, global demand has strengthened, while investment inflows into silver-backed instruments have increased significantly in recent times. Additionally, expectations that the US Federal Reserve may cut interest rates have boosted sentiment for precious metals.
At the same time, a weakening US dollar has made silver more attractive for investors worldwide. Geopolitical tensions, including the ongoing Russia-Ukraine war, have further added to market uncertainty. Moreover, policy decisions and trade-related measures adopted by former US President Donald Trump after taking office for a second term have contributed to volatility in global markets.
Industrial Demand Adds Strength
Unlike gold, silver enjoys strong industrial demand beyond the jewellery sector. Demand from semiconductors, solar power projects, and electric vehicle manufacturing has increased steadily. As a result, silver has gained importance as a critical industrial metal, which is adding long-term support to prices.
Furthermore, rising prices have encouraged more investors to allocate funds into silver ETFs (exchange-traded funds). This increased participation through ETFs is also contributing to the ongoing price rally.
Outlook Remains Positive
Given the combination of investment demand, industrial usage, and global economic uncertainty, market experts believe silver prices could remain firm in the near term. As long as these supportive factors persist, silver is likely to stay in focus for both investors and industry participants alike.
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