Silver prices have seen a significant surge, rising by 22% in January, attracting increased investor attention. This surge has positioned silver as the best performer among major asset classes, driven by strong demand and positive global factors. MCX silver prices, after a remarkable 170% rise previously, have maintained robust momentum this month.
From an April close of Rs 95,917, silver has climbed nearly 200% to reach Rs 2,87,762 as of Friday, showcasing a performance usually associated with high-growth stocks rather than commodities. The metal has also hit fresh record highs, with the latest peak recorded at Rs 2,92,960 last week. Analysts have swiftly revised their targets upwards as silver surpassed expectations faster than anticipated.
Last year, domestic brokerages had predicted silver prices to be around Rs 1,10,000 by year-end, a level surpassed well before the midpoint. The rally continued, with prices surging to Rs 2,54,000, more than doubling earlier estimates. As above-ground reserves dwindle, physical silver holders are demanding higher prices, further propelling rates upwards.
At the beginning of 2025, silver was largely overlooked by investors, but its sharp rally amidst economic uncertainty and geopolitical tensions has shifted sentiments. Additionally, global central banks, after accumulating substantial gold reserves, are now reportedly adding silver to their holdings, bolstering prices and keeping MCX silver close to the Rs 3 lakh mark. With the latest close at Rs 2,87,762, silver is now just about 4.2% away from surpassing the Rs 3 lakh milestone.
