Silver Smashes All Records In A Stunning Rally, Is The Metal Set To Shine More Or Is It Time To Cash Out?

Mumbai: Silver prices have surged sharply, hitting a fresh all-time high above Rs 2,54,000 per kilogram in the domestic market. The metal jumped nearly 6 percent in a single session, continuing its powerful upward trend. This strong rally has caught the attention of investors and traders alike, raising questions about whether silver still has room to rise or if it is time to book profits.

Best Performing Asset of the Year

In the current calendar year, silver has delivered exceptional returns. Prices have risen by more than Rs 1.52 lakh per kg, a gain of nearly 175 percent, making silver the best-performing asset so far. It has clearly outperformed gold, which has gained a little over 80 percent during the same period. Last week alone, silver prices climbed around 15 percent due to tight global supplies and rising demand.

China’s Role in the Supply Crunch

One of the key reasons behind the surge is China’s growing influence on the silver market. China is the world’s largest consumer of silver and a major producer of solar panels, electronics and electric vehicles. Analysts say China’s decision to impose export restrictions on silver from January 1, 2026, could disrupt global supply chains. These restrictions, which will require export licences through 2027, have added to fears of limited availability.

Domestic and Global Price Support

In India, silver futures on the MCX touched a new record high of around Rs 2.42 lakh per kg. Internationally, silver prices are trading close to $80 per ounce, which has further supported the rally in domestic markets. Strong global cues have played a big role in pushing prices higher in India.

Why Silver Prices Are Rising?

Silver supply has remained tight for several years. Since silver is mostly produced as a by product of metals like copper, lead and zinc, higher prices do not quickly lead to increased production. This has kept the market in deficit. At the same time, expectations of interest rate cuts by the US Federal Reserve have made silver more attractive. Ongoing global tensions and strong demand from industries such as solar energy, electric vehicles and electronics have further fueled the rally.

Disclaimer: This article is intended solely for information and does not constitute investment advice from The Free Press Journal. Readers are advised to seek guidance from a qualified financial advisor before making any investment decisions.