Gold and silver prices have created a stir in 2025. While gold has shone brightly, the rising pace of silver has surprised everyone, and this trend continues even as the year comes to an end. On Monday, the first trading day of the week, silver prices on MCX (Multi Commodity Exchange) rose by over Rs 14,000 per kg at the opening, and the price of 1 kg of silver crossed Rs 2.54 lakh. However, there was some relief regarding gold prices. Gold futures prices fell upon opening and were seen trading in the red zone.
ever increasing price of silver
There are no signs of decline in silver prices. In four trading days of last week alone, the rate of silver had increased by more than Rs 32,000 per kg. On Monday, when trading began on the Multi Commodity Exchange, silver rates rose to a new high of Rs 2,54,174 from its previous closing price of Rs 2,39,787. This means that this precious metal became costlier by Rs 14,387 upon opening.
gold became cheaper upon opening
While the price of silver and its rapidly increasing pace is showing no signs of stopping, there was a slowdown in gold on Monday. At the opening, MCX gold rate for February 5 expiry stood at Rs 1,39,501 per 10 grams, which was Rs 372 lower than its previous closing price of Rs 1,39,873. Although this decline is minor compared to the rapid rise in gold prices, it can be considered a relief.
China connection to silver bullishness
Talking about the reasons for this tremendous rise in silver prices, there are many factors working behind it. The weakening US dollar and expectations of Fed rate cut have once again attracted investors towards precious metals as safe investments. In the case of silver, its industrial demand has been continuously increasing, while the supply has lagged behind. Silver is used in everything from electric vehicles to electronics, from which the scale of its demand can be estimated.
On the other hand, news of restrictions on silver exports by China has further fueled the rise in prices. According to reports, China, the world’s largest silver producing country, is preparing to impose restrictions on silver exports from January 1, 2026. The Xi Jinping government may impose rules related to export licenses, which may limit exports.
The world’s richest man and owner of electric car company Tesla, Elon Musk, has also expressed concern about silver prices. “This is not good, silver is needed in many industrial processes,” he wrote in a Twitter (now X) post, according to a report by The Guardian.
