Silver prices rallied sharply by Rs 7,457 per kg on Wednesday to Rs 1,84,448 against Rs 1,78,893 on Tuesday following strong demand from green energy sector and financial investors through exchange traded funds (ETFs), according to the Indian Bullion and Jewellers Association of India data.
On MCX, silver for March delivery touched a new high of Rs 1,91,800 per kg with a gain of Rs 2,082 in the first half of trading on Wednesday.
It surged to fresh all-time highs, with COMEX touching $62 and MCX climbing to 1,92,000, as a potent combination of macro and physical market forces drove an aggressive rally.
Tighter global inventories, decade-low Chinese stockpiles, and elevated borrowing costs in London have intensified the supply squeeze, amplifying price momentum. Industrial consumption from solar, EVs, and electronics continues to outstrip mine output, sustaining a structural deficit.
Imminent Fed cut
Besides the industrial users, financail investors have also started chasing silver through ETFs due to the steady rise in demand amid supply shortage.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, said silver surged to above $61 an ounce as expectations of an imminent 25 basis points Fed cut met a pronounced squeeze in the physical market.
A more hawkish Fed signal or a sudden increase in mine output would check gains, but for now physical scarcity and heavy institutional demand are the main engines of the rally with the possibility of MCX Silver March hitting Rs 2 lakh a kg soon, he said.
Ajay Kumar, Director, Kedia Commodities said silver prices have doubled in 2025, driven by several pivotal factors including the US move to add silver to its critical metals list.
Industrial demand, particularly from data centers, has escalated rapidly, pushing prices higher with the persistent supply deficit contributing to the upward momentum in silver prices, he said.
Jewellery demand up
Suvankar Sen, Managing Director and CEO, Senco Gold & Diamonds, said the demand for silver jewellery has also been going up steadily as it is being viewed as an alternate to highly-priced gold jewellery besides gifting purposes.
The short supply of physical silver has been pushing up the prices amid huge inflows into silver ETFs and prices are expected to choppy with an upward bias next year, he said.
Ponmudi R, CEO, Enrich Money, said unlike speculative moves earlier, silver rally is no longer just sentiment-driven but is now being powered by real consumption demand and strong currency tailwinds.
With the rupee remaining under pressure against the dollar, import-linked metals like silver are getting automatic price support in the domestic market and moving faster than gold, he said.
Published on December 10, 2025
