Silver prices hit record high of ₹2.06L/kg: What's driving surge?
What's the story
Silver prices have hit an all-time high of ₹2,06,111 per kilogram on the Multi Commodity Exchange (MCX) today. The unprecedented surge is attributed to a combination of global factors, macroeconomic trends, and structural industrial demand. Globally too, silver has crossed the $66 per ounce mark, reaching a fresh all-time high as investors shift toward tangible assets after a mixed US jobs report.
Market dynamics
Rising unemployment in US fuels silver's appeal
Aamir Makda, a Commodity and Currency Analyst at Choice Broking, has linked the surge to rising unemployment in the US (now at 4.6%). This makes a Federal Reserve rate cut in 2026 more likely, enhancing the appeal of non-yielding assets like silver. He said, "Silver prices overtaking crude oil for the first time in 40 years sends a clear message: the future belongs to tangible, critical and rare."
Industrial demand
Silver's industrial applications and supply-demand imbalance
V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted silver's wide application in industries like EVs, solar energy, and electronics. He said, "What sets silver apart is its wide application in industrial uses." The supply of this scarce metal hasn't kept pace with demand, pushing prices higher. Jigar Trivedi of Reliance Securities also echoed these concerns about a supply-side deficit that has persisted for five consecutive years.
Future outlook
Analysts maintain bullish bias for silver
Despite the possibility of profit booking, analysts remain optimistic about silver's resilience. Justin Khoo from VT Markets suggested that the rally above ₹2.05 lakh/kg and $65/oz has entered a new phase, where risk management is critical. He said, "Silver may break the all-time high again before retracing and then moving up again, reflecting strength of underlying momentum."