Even before Diwali and Dhanteras, a rise in the prices of gold and silver is being seen. The price of one kg silver in India has now crossed ₹2 lakh, which is the highest ever level. Gold prices have reached ₹1.30 lakh per 10 grams. This surge in gold and silver prices is due to global instability, geopolitical tensions and increasing supply shortage. Spot silver briefly rose above $53.54 an ounce, according to GoodReturn and Bloomberg, but then declined slightly as early signals suggested the global pressure on physical silver may be stabilising.
Silver hits record high
In Mumbai, Delhi and Kolkata, silver reached ₹1,89,100 per kg, while in Chennai and Hyderabad, silver reached ₹2,06,100 per kg. This is the record level of silver till now. The surge in silver prices is due to a shortage of liquidity in the London bullion market, which has increased demand for physical silver, pushing local benchmark prices higher than New York futures. Gold and silver prices are projected to rise 58% to 80% in 2025, more than stocks and bonds.
Silver ETF gave excellent returns
Silver exchange-traded funds (ETFs) have delivered stellar returns, further cementing silver’s reputation as the “Wealth Metal of 2025.” Silver ETFs have more than doubled investors’ wealth this year. Gold ETFs have gained nearly 63%, while stock indices like Sensex and Nifty have registered marginal gains of 6-7%. On MCX, December silver futures last traded at ₹1,62,700 per kg, while global spot prices are trading at a premium amid declining stocks.
What next?
The physical silver market remains extremely tight, and ETF prices are reflecting even greater demand pressure due to supply delays in LBMA-certified silver bars. Experts attribute this rise to a structural imbalance between supply and demand, which is unlikely to be resolved any time soon.
Experts warn that unless base metals prices rise significantly, global silver supply will remain limited until at least 2028. The Silver Institute projects a fifth consecutive global shortage in 2025, with a projected shortfall of 118 million ounces. Despite a slight decline in overall demand next year, industrial demand for silver is projected to increase by another 3% in 2025, given its important role in solar panels, electric vehicles (EVs) and advanced battery technologies.
Silver targets increased
Citing continued shortages, Bank of America raised its target for silver to $65 an ounce, with an average price of $56.25. Japanese brokerage firm Nomura cautioned that silver’s bullish momentum could push prices above $50 an ounce, but a short-term correction will provide an opportunity for long-term entry. Analysts at Motilal Oswal said this rise is based on industry demand. The recent breakout above $50 is not just a technical phenomenon, but a structural assessment that reflects new demand-supply realities. The brokerage firm estimates that silver will remain stable around $50-55 in the coming months, and could reach a possible peak of $75 by 2026 and $77 by 2027 on COMEX. This means domestic silver prices could reach ₹2,40,000 by the end of 2026 and ₹2,46,000 by 2027.
