NEW DELHI (Economy India): Silver prices on the Multi Commodity Exchange (MCX) soared to an all-time high of ₹1,14,875 per kilogram in early trade on Monday, marking a historic peak in India’s futures market. The surge was primarily driven by increased speculative positions by traders, robust industrial and investment demand, and a bullish trend in global precious metals.
The September delivery contract for silver witnessed a sharp upswing during morning hours, setting a new record amid high volume trading and strong investor interest.
Historic Price Milestone
This is the highest price ever recorded for silver on India’s MCX platform. The previous highs were tested earlier this year, but Monday’s spike marks a significant psychological breakthrough for the bullion market.
“Silver futures reaching ₹1.14 lakh per kg reflects both global price action and domestic investor sentiment, which remains heavily skewed towards safe-haven assets,” said Mohit Bansal, Commodity Strategist at EdelWealth Research.
Key Market Drivers Behind the Rally
1. Global Bullish Trend in Precious Metals
Silver prices have been climbing globally, supported by:
- Rising geopolitical tensions (Middle East, Russia-Ukraine)
- Expectations of interest rate cuts by major central banks
- Renewed interest in safe-haven assets like gold and silver
The global COMEX silver rates also hit multi-month highs, pushing domestic futures to mirror the trend.
2. Strong Industrial Demand
Silver is not just a precious metal—it is also widely used in:
- Solar panels (photovoltaics)
- Electric vehicles (EVs)
- Semiconductors and electronics
With the ongoing global push for clean energy and green technologies, industrial demand for silver remains elevated, creating long-term support for prices.
3. Retail & Institutional Participation
Indian investors—both retail and institutional—are turning to precious metals as a hedge against inflation and rupee depreciation. This has led to a jump in open interest and trade volumes in silver contracts.
“Silver is becoming increasingly attractive to portfolio managers and HNIs looking to diversify amid uncertain equity performance,” said Parul Shah, Head of Commodities, Axis Securities.
Market Reactions and Trading Trends
- Open Interest (OI) in the September silver contract rose by 6.8%, indicating fresh positions.
- Trading volume on MCX touched a 3-month high for silver.
- Spot silver prices also saw a rise, trailing the futures curve.
Traders are now closely watching the ₹1,15,000/kg mark, which if breached, could lead to technical buying and push prices even higher.
Outlook: Will the Rally Sustain?
Analysts believe that while the silver rally is backed by fundamentals, short-term corrections are possible due to profit booking and volatility in global markets.
“The fundamentals—rising industrial usage, low mine supply, and speculative inflows—are intact. However, near-term volatility could be high if the US dollar strengthens or bond yields rise,” noted Abhishek Kamat, Lead Metals Analyst at GLOBE Commodities.
If central banks begin rate cuts as anticipated in late 2025, both gold and silver may see renewed highs in the coming quarters.
Silver’s meteoric rise to ₹1,14,875/kg on MCX reflects a confluence of domestic enthusiasm and global bullishness in precious metals. With industrial use rising and market uncertainty looming large, silver may continue to shine as both a strategic commodity and an investment haven in India’s financial landscape.
(Economy India)
