Silver has recently captured the attention of investors and analysts alike, staging a remarkable rally that has seen prices on the Multi Commodity Exchange (MCX) soar to ₹1,25,000 per kg, up from approximately ₹97,000 in February 2025. This surge is not merely a fleeting moment; it is underpinned by a confluence of global momentum, robust industrial demand, and tightening supply constraints. As the market evolves, analysts are eyeing a potential target of ₹1,50,000, driven by structural factors that promise to keep silver buoyant in the near term.
The Driving Forces Behind the Surge
Global Momentum and Industrial Demand
The rally in silver prices is not solely attributed to its traditional role as a safe-haven asset. Instead, silver is increasingly being recognized as an industrial powerhouse. Its applications in solar panels, electric vehicle (EV) batteries, 5G networks, and medical devices are expanding, adding significant support to its price. In August 2025, the U.S. officially included silver in its Critical Minerals List, highlighting its essential role in modern technology and renewable energy.
Tightening Supply Constraints
On the supply side, the situation remains precarious. Global demand for silver has outpaced supply for four consecutive years, leading to significant deficits. In 2024, a shortfall of 148.9 million ounces was recorded, with another projected deficit of 117.6 million ounces in 2025. This persistent imbalance has reinforced bullish sentiment among investors and analysts.
Expert Insights
Jahol Prajapati, a Research Analyst at SAMCO Securities, noted that the recommendation to invest in silver was made on February 20, 2025, when prices were around ₹97,000. With the recent surge to ₹1,25,000, he emphasized that the next visible target stands at ₹1,50,000, driven by structural factors. Prajapati remarked, “Silver’s rally is not only about safe-haven demand; it is being redefined as an industrial powerhouse.”
Long-Term Projections
Analysts are optimistic about silver’s long-term trajectory. Manoj Kumar Jain of Prithivifinmart Commodity Research has projected that silver prices could test $50 per ounce by the end of 2026 and $65 by the end of 2028. In Indian rupees, this translates to potential prices of ₹1,60,000 by 2026 and ₹2,00,000 by 2028. Such projections underscore the belief that silver is on a robust upward trend.
Monthly Gains and Future Milestones
Jigar Trivedi, Senior Research Analyst at Reliance Securities, echoed similar sentiments, stating that silver remains on track for healthy monthly gains. He noted that silver traded around $38.8 per ounce and was poised to gain approximately 6% in August. Trivedi projected that prices could surge to ₹1,40,000 per kg by the summer of 2026, further solidifying silver’s status as a valuable investment.
Conclusion
The recent rally in silver prices reflects a complex interplay of global economic factors, industrial demand, and supply constraints. As the market continues to evolve, investors are advised to stay informed about these dynamics. With expert projections indicating a bullish long-term outlook, silver is poised to remain a focal point for both investors and analysts in the coming years.
For those interested in the latest developments in the commodities market, silver’s journey is one to watch closely. As always, it is essential to conduct thorough research and consider expert opinions before making investment decisions.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own and do not represent the views of The Economic Times.)
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