Silver prices in India surged over 15% last week, reaching a fresh record high of Rs 2.42 lakh per kilogram in the futures market, fueled by strong industrial demand, expectations of US interest rate cuts in 2026, and concerns over potential supply disruptions.
The rally in the domestic market mirrored global trends, where silver hit an all-time high of USD 79.70 per ounce, surging over 11% in a single day. On MCX, silver futures for March 2026 delivery climbed by Rs 18,210, or 8.14%, touching Rs 2,42,000 per kilogram before settling at Rs 2,39,787 per kg on Friday.
During the holiday-shortened week, the white metal rose by Rs 31,348, or 15.04%, from Rs 2,08,439 per kilogram on December 19, reflecting strong buying momentum amid heightened volatility. Over the year, silver prices have skyrocketed by Rs 1,52,554, or nearly 175%, from Rs 87,233 per kg on December 31, 2024.
Globally, silver futures breached the USD 79 per ounce mark on Comex, with the March 2026 contract surging USD 8.02, or 11.2%, to hit USD 79.70 per ounce before settling at USD 77.19. The rally is supported by robust industrial consumption, steady ETF inflows, healthy physical demand, and increased capital rotation from equities into commodities.
Tightening global supplies, particularly in China—the largest consumer of silver—have also contributed to the price surge. Beijing has announced export restrictions on silver starting January 1, 2026, requiring companies to apply for licences, a move expected to remain in place through 2027 and potentially disrupt global supply chains.
Silver is now increasingly being driven by its critical role in technology and industrial applications, rather than just as a traditional precious metal.
