Silver has seen remarkable growth this year, with a 158% increase in 2025, pushing domestic spot rates up by nearly Rs 1,45,000 per kg, a rise of around 170%. Analysts suggest that factors such as strong industrial demand, limited supply, robust ETF inflows, and potential US Federal Reserve rate cuts could drive silver prices even higher, possibly reaching $100 per ounce.
Experts in the industry point out that the surge in silver prices is driven by its industrial applications in electric vehicles, solar power, semiconductors, and data centers. Additionally, a significant supply deficit of 148.9 million ounces in 2024 has bolstered investor confidence, along with expectations of further Fed rate cuts and a weaker dollar, amidst geopolitical tensions.
The geopolitical landscape, marked by events like the US blockade of Venezuelan crude, Russia-Ukraine conflicts, and US military actions against ISIS in Nigeria, has contributed to the rise in precious metal demand beyond industrial needs. In the commodities market, MCX silver March futures hit a peak of Rs 2,32,741 per kg recently, with many analysts foreseeing the possibility of silver reaching $100 per ounce in 2026.
Looking ahead to 2026, a report from Axis Mutual Fund warns of potential overvaluation risks that could lead to ETF outflows or price pressure due to changes in the copper market. Despite these concerns, analysts remain optimistic about silver’s performance, citing multiple favorable factors that could sustain its upward trajectory.
