Gold and silver prices continue to rise. These precious metals are reaching new heights every day. This can be gauged from the surge seen in just three trading days this week. While the price of silver has increased by more than Rs 48,000 in just three days, the price of gold has also seen a huge jump, becoming costlier by more than Rs 6,000 in these three days.
Gold and silver rose again on Wednesday
First of all, let’s talk about the continuous rise in the price of silver. On MCX, silver for March 5 expiry rose to a new high of Rs 3,83,100 per kg from Tuesday’s closing price of Rs 3,56,279 per kg. This means that it became costlier by Rs 26,821. If we look at the last three days, the price of 1 kg silver has increased by Rs 48,401 from Monday’s closing price of Rs 3,34,699.
Gold is also not lagging behind, and its prices are also continuously increasing. In the three trading days of the week, gold with expiry of February 5 became costlier by Rs 6,876, rising from Rs 1,66,073 to Rs 1,72,949 per 10 gram on Wednesday. In just one day, the price of 10 grams of 24-carat gold increased by Rs 5,028.
Silver’s rise continues without pause
This rise in silver prices reflects the tremendous increase in global silver prices in the last one year. It rose from about $30 an ounce in January 2025 to about $111 an ounce in January 2026, a 270% increase in 12 months. This bullish trend has continued into 2026, with silver prices up nearly 20% so far in January. This is due to investors turning to safe-haven assets amid global economic and geopolitical uncertainties.
Main reasons for rise in silver prices
The current rise in silver prices is due to the increasing demand for silver. That’s because AI, semiconductors, solar power, batteries – everything requires silver. Kirtan Shah, co-founder of FPA Edutech and founder of Truvanta Wealth, warned investors about the risks of chasing the silver rally. He gave two main reasons for the rising prices of silver. The first is real industrial demand from companies involved in battery, technology and manufacturing. Second is investment demand. When investors purchase silver through ETFs, the funds typically purchase physical silver on the backend, which means that increased inflows into silver ETFs also increase demand for silver. Demand for silver ETFs has doubled in just the last 90 days.
Is the silver bubble about to burst?
Despite the rally in silver prices, Shah warned investors about the risks of falling prices. He said that silver has a history that when its price falls, it loses 80-90 percent of its value. This has happened twice in history. Talking about himself he said that although he will maintain his existing silver holdings, he will not buy any new silver at today’s prices.
They concluded that despite strong industrial demand, the current uptick is mostly driven by investment. According to Shah, this is a much bigger bubble than the real industrial demand. Investors should be very careful while using silver as an investment instrument.
