Patna: Silver prices touched a fresh milestone on Monday, climbing to Rs 3 lakh per kilogram on the Multi Commodity Exchange of India (MCX), underlining the speed and scale of the metal’s recent rally.
The precious metal gained more than Rs 14,000 in a single session, having traded around Rs 2.87 lakh on Friday. In the physical bullion market, silver was quoted at about Rs 2.94 lakh per kilogram, up nearly Rs 12,000, traders said.
The latest surge highlights how sharply silver prices have accelerated in recent months. Silver first crossed the Rs 2 lakh mark on MCX around mid-December 2025, meaning it took barely a month to rise from Rs 2 lakh to Rs 3 lakh. By contrast, it had taken about nine months to climb from Rs 1 lakh to Rs 2 lakh, and nearly 14 years to move from Rs 50,000 to Rs 1 lakh.
Market analysts attribute the rally to a widening gap between demand and supply. Unlike gold, silver has a strong industrial footprint and is a key component in solar panels, electric vehicles and 5G infrastructure. With governments and companies worldwide pushing aggressively towards green energy and electrification, demand for silver has risen to record levels.
Supply, however, has failed to keep pace. Around 70% of global silver output comes as a byproduct of mining other metals such as copper and zinc. As a result, silver production depends heavily on trends in those sectors. Tighter environmental regulations and delays in mining projects in several countries have further constrained output, analysts said.
Macro-economic factors are also supporting prices. Ongoing geopolitical tensions and persistent inflation have prompted investors to seek refuge in precious metals, diverting funds away from equity markets. In addition, silver is priced globally in US dollars, making it sensitive to currency movements. The dollar index has fallen sharply in recent weeks, from around 109 to near 98, adding upward pressure on silver prices.
The rally has revived interest among retail investors, many of whom are weighing whether to enter the market now. Financial advisers say silver can be accessed in three main ways. Physical silver — in the form of coins or bars — remains the most straightforward option, though buyers are advised to purchase only BIS-hallmarked products from reputable sellers to avoid purity and storage risks.
Another route is through silver exchange-traded funds (ETFs), which track the price of silver and can be bought and sold like shares through a demat account, without concerns over theft or quality. More experienced investors also trade silver futures on MCX, using margin trading to take larger positions, though this carries significantly higher risk.
With prices at historic highs, analysts caution that volatility is likely to remain elevated. Whether silver continues its meteoric rise, they say, will depend on how long supply constraints persist and whether global economic uncertainties continue to drive investors towards safe-haven assets.
