On Monday, silver prices on MCX touched ₹2,54,174 per kg, a new all-time high. This is a 196% increase in the price of silver in 2025. If someone had invested ₹1 lakh in silver on January 1, 2025, that amount would have been worth ₹2.97 lakh today. The price of silver on the first day of 2025 was ₹85,913 per kg. Now the question is whether this surge in silver prices is just a bubble or are there real reasons behind it.
Is the silver bubble about to burst?
Robert Kiyosaki, author of the famous book Rich Dad Poor Dad, has said that silver prices could reach $200 per ounce in 2026. However, he has also advised not to invest in silver right now, as he believes that the price bubble is about to burst. He said that FOMO (fear of missing out) is clearly visible in the silver market at this time, and this is often seen before a big decline. Currently, global silver prices are around $74 an ounce.
What did Robert Kiyosaki say?
On the social media platform Per ounce. Remember my rich dad’s lesson: ‘Your profits are made when you buy, not when you sell.’ Patience is key for smart investors.” According to Kiyosaki, correct entry points are more important for making long-term profits than decisions made on emotions.
a fragmented market
The rise in silver prices this year has divided the market into two parts. One group considers it excessive speculation, while the other believes that the price rise is due to supply shortage, rising industrial demand and export restrictions from China.
A classic commodity bubble
Amit Goyal, co-founder and chief global strategist at asset management company Pace 360, also described the recent surge in silver prices as a classic commodity bubble. He says that this surge has nothing to do with the fundamental truth. He said that the current price of silver is completely different from the dollar index, equity market and any yardstick of truth.
Comparison of crude oil bubble and tech bubble
He compared it to the crude oil bubble of 2008, when crude oil prices reached $145 per barrel. Years later, crude oil is trading at around $60 per barrel. He also compared the current price of silver to the tech bubble of 1999-2000. “This is what a bubble looks like. The market is overreacting to even small positive news, just like what happened with tech stocks during the tech bubble,” Goyal said. However, he said that it is not yet clear whether silver has reached its last high before the fall or not.
Why not invest in silver ETFs?
Goyal also emphasized that despite the sharp rise in prices, money has flowed out of silver ETFs in recent days. “Throughout this entire rise in silver prices of approximately $9-10, we have not seen any inflows into silver ETFs,” he said. He believes that this rally is being driven by speculation rather than fundamental investment. He acknowledged that the China export ban deadline was an immediate trigger, but the news had been in the market for several weeks.
Where will prices go?
He estimates that when this bubble bursts, silver prices will break all support levels and fall at least 50% to 60% from their highs within approximately one to one and a half years. He said that the gold-silver ratio falling from 108 to 54 and the greed indicator being higher than the 1980 high are clear signs of a bubble in silver.
