Silver price today: MCX Silver hits fresh all-time high, rises 2.5% to ₹1,09,250/kg — Do you own?

Silver Soars to Historic High: MCX Hits ₹1,09,250/kg

In a dramatic rally on Monday, silver prices on the Multi Commodity Exchange (MCX) surged to an all-time high of ₹1,09,250 per kilogram, registering a sharp 2.5% intraday gain. This historic move has not only captured the attention of retail and institutional investors but also reignited the debate on whether silver is the new safe-haven asset in an increasingly volatile global economy.

What’s Driving Silver's Unprecedented Rally?

Multiple macroeconomic and geopolitical tailwinds are propelling silver to new highs.

1. Global Economic Uncertainty

Renewed concerns around U.S. inflation, sluggish global growth, and tensions in the Middle East are pushing investors toward precious metals. While gold has traditionally been the go-to asset in times of crisis, silver is increasingly being seen as a more affordable alternative with significant industrial utility.

2. Weakening U.S. Dollar and Rate-Cut Bets

The U.S. Federal Reserve’s dovish stance and growing anticipation of interest rate cuts later this year have weakened the dollar, thereby boosting the appeal of dollar-denominated assets like silver and gold. A weaker dollar typically makes commodities cheaper for foreign investors, further adding to the bullish momentum.

3. Industrial Demand on the Rise

Silver’s dual role as a precious metal and industrial commodity has amplified its attractiveness. With increasing demand from electric vehicles (EVs), solar energy, and electronics manufacturing, the fundamentals supporting silver are robust.

“We’re seeing a perfect confluence of factors — speculative buying, strong industrial demand, and inflation hedging — all of which are turbocharging silver,” said Ravindra Rao, Head of Commodity Research at Kotak Securities.

Market Reactions and Comparative Analysis

The Indian commodities market witnessed heavy trading volumes following the breakout. Silver futures for July delivery traded up by over ₹2,600/kg during early market hours, while spot silver prices in local bullion markets also reflected a similar uptick.

Interestingly, gold prices have also been buoyant, hovering near ₹74,000 per 10 grams, but silver’s pace of appreciation has outperformed gold on a year-to-date basis.

“Silver has gained more than 35% in the last six months alone, compared to gold’s 22%. The ratio of gold to silver is narrowing, which indicates a bullish silver trend,” added Kunal Shah, Head of Commodities at Nirmal Bang.

What Are Analysts Saying?

Market experts are increasingly positive on silver’s long-term prospects:

• Motilal Oswal Financial Services maintains a bullish outlook, forecasting that silver could touch ₹1,15,000/kg by the end of 2025, citing rising global demand and limited supply growth.

• Axis Securities has urged cautious optimism, advising investors to consider silver as part of a diversified portfolio but to remain alert for corrections.

• Jefferies India notes that silver could outperform gold if industrial demand accelerates further amid global clean energy initiatives.

Retail Investors: What Should You Do?

With silver hitting new highs, retail investors are faced with a critical question — buy, hold, or sell?

1. For Existing Investors

If you already hold silver, either in physical form, ETFs like Silver BeES, or through futures contracts, analysts suggest partial profit booking while holding a core position for the long term.

“We recommend trimming 10-15% of holdings at current levels and reinvesting on dips,” advised Sanjay Jain, Portfolio Manager at Geojit Financial.

2. For New Investors

For new entrants, now may not be the ideal time to take a large position due to the possibility of short-term corrections after such a steep run-up.

• SIPs in silver ETFs or small quantities of silver bars could be a strategic entry point.

• Wait for support levels around ₹1,05,000–₹1,06,000/kg before entering fresh positions.

Investor Outlook: Cautiously Optimistic

Despite the record high, silver's future remains promising due to:

• Long-term industrial utility

• Renewable energy tailwinds

• Monetary easing cycles globally

• Increasing institutional participation

However, volatility remains a key risk. Silver is historically more volatile than gold, and corrections of 5–8% are not uncommon even in a bull market.

“Investors need to manage position sizes and use stop-loss orders. Momentum is strong, but risk management is vital,” cautioned Amit Sajeja, Commodity Strategist at HDFC Securities.

A Silver-Lined Opportunity?

Silver’s surge to ₹1,09,250/kg reflects a broader narrative — growing global economic anxiety paired with structural demand growth in industrial sectors. For savvy investors, silver offers both short-term trading opportunities and long-term value — but only with a disciplined strategy.

Whether you’re a seasoned trader or a long-term investor, one thing is clear: silver is no longer just the poor man’s gold — it’s an asset that’s proving its mettle.