Silver Prices Soar to New Heights: What’s Driving the Surge?
Silver Prices Continue to Climb
New Delhi: The price of silver has continued its impressive upward trend, marking its fifth consecutive day of increases. On Monday, the price surged by Rs 3,650, reaching Rs 2,40,000 per kilogram in the national capital, as reported by the All India Sarafa Association.
Previously, silver had closed at Rs 2,36,350 per kilogram on Friday.
This year has seen silver prices skyrocket, with an astonishing rise of 167.55 percent, translating to an increase of Rs 1,50,300 from the Rs 89,700 per kilogram recorded on December 31, 2024.
In contrast, gold prices of 99.9 percent purity experienced a decline, dropping Rs 500 to Rs 1,41,800 per 10 grams, following a record high of Rs 1,42,300 per 10 grams in the last trading session.
The drop in gold prices is attributed to profit-taking by traders after international gold prices fell nearly USD 70 to USD 4,463 per ounce amidst significant market volatility, according to Jateen Trivedi, VP Research Analyst at LKP Securities.
In global markets, spot gold was down by USD 69.67, or 1.54 percent, trading at USD 4,462.96 per ounce.
Spot silver also retreated from its all-time highs, decreasing by USD 4.06, or 5.13 percent, to USD 75.09 per ounce, as traders took profits following a year-end rally that peaked at USD 83.97 per ounce.
Trivedi noted that the overall market trend remains volatile as investors reassess their positions after the recent surge. The upcoming Federal Reserve meeting minutes are expected to be a significant market influence, while the US holiday season may lead to lower trading volumes.
Hareesh V, Head of Commodity Research at Geojit Investments Ltd, commented that in 2025, both gold and silver reached unprecedented levels due to a combination of macroeconomic changes, industrial demand, and supply constraints.
He emphasized that commodities have emerged as the standout performers, while equities have shown modest growth, highlighting the increasing interest in raw materials.
This trend reflects a growing demand for tangible assets amid inflation worries, robust industrial consumption post-COVID, and escalating geopolitical risks, which have enhanced the attractiveness of commodities compared to paper assets.
Looking ahead, Hareesh V predicts that the bullish trend in commodities will likely continue into 2026 and beyond, driven by persistent structural dynamics across various sectors.
Gold's value is supported by ongoing central bank purchases and heightened geopolitical risks, while declining real interest rates and macroeconomic uncertainties bolster its status as a safe haven. Silver is expected to benefit from ongoing supply shortages and rising industrial demand, particularly in sectors like solar energy, AI, electric vehicles, and electronics, keeping it in a favorable price-discovery phase.