Silver prices in India hit lifetime high of ₹1.43L
What's the story
Silver prices have hit a record high in India, with futures soaring to ₹1.43 lakh per kg on Monday. The jump comes as part of a global trend where spot silver also rose by 1% to $46.47 per ounce. The rise is mainly attributed to a weakening rupee, which has made imported silver more expensive and pushed up domestic costs. Separately, gold prices have also hit a record high in India, touching ₹1.14 lakh per 10 grams.
Market dynamics
Factors behind silver price surge
The surge in silver prices is driven by a combination of global monetary easing and persistent geopolitical tensions. These factors have led investors to turn toward precious metals like silver. In India, the weakening rupee has made imports costlier while demand for silver continues to rise due to its use in solar panels and electronics.
Price stability
Strong investor interest in silver
Investor interest in silver remains strong, with silver-backed exchange products seeing significant inflows. Bullish positions in futures markets also contribute to price stability. Analysts believe that the dual nature of silver as both a precious metal and an industrial metal has strengthened investor conviction, making it a reliable investment option amid market volatility.
Market forecast
Axis Mutual Fund report on silver
The Axis Mutual Fund report highlights silver's long-term growth potential, driven by clean energy transitions and manufacturing demand worldwide. Analysts expect the metal to remain strong in the near term, supported by global demand and currency-led price strength in India. However, any recovery in the rupee or shift in interest rate expectations could trigger short-term corrections.