Winning Bizness Desk
Mumbai.Silver prices in India touched a historic milestone on December 17, crossing Rs 2 lakh per kilogram for the first time ever. Data from the India Bullion and Jewellers Association shows silver opened the day at Rs 2,00,750 per kg, briefly moving above the landmark level before easing later. Despite the intraday pullback, silver still closed sharply higher at Rs 1,99,641 per kg, up Rs 7,664 from the previous close of Rs 1,91,977. With this move, silver has hit a fresh all-time high, highlighting the metal’s extraordinary rally over the past year.
A rare and rapid price journey
Silver’s rise from Rs 1 lakh to Rs 2 lakh per kg has taken just nine months, underscoring the speed of the current bull run. The metal had first crossed Rs 1 lakh per kg on March 18 this year. In contrast, it took nearly 14 years for silver prices to climb from Rs 50,000 to Rs 1 lakh per kg, reflecting how unusual and aggressive the recent surge has been. Market participants say this sharp acceleration signals a structural shift in demand rather than a short-term speculative spike.
Industrial demand reshapes silver’s role
One of the strongest drivers behind silver’s rally is its expanding industrial use. Silver is no longer seen only as a jewellery or investment metal but as a critical raw material for modern industries. Demand is rising sharply from sectors such as:
- Solar power and photovoltaic panels
- Electronics and high-end electrical components
- Electric vehicles and battery technologies
Global uncertainty and investor appetite grow
Apart from industrial demand, global factors are also fuelling the rally. Fears of fresh tariffs and trade disruptions under a possible return of Donald Trump-era policies have led American companies to build large silver inventories. Manufacturers worldwide are rushing to secure supplies early, worried about production disruptions. At the same time, investor interest is climbing rapidly through silver exchange-traded funds, adding another layer of demand that is tightening the market further.
Gold follows silver, yearly gains remain strong
Gold prices also moved higher alongside silver. On December 17, 24-carat gold rose Rs 540 to Rs 1,32,317 per 10 grams, up from Rs 1,31,777 a day earlier. Gold had touched its all-time high of Rs 1,33,442 per 10 grams on December 15. So far this year, gold prices have surged by Rs 56,155, rising from Rs 76,162 per 10 grams on December 31, 2024. Silver has delivered an even stronger return, jumping by Rs 1,13,624 per kg from Rs 86,017 at the end of last year.
Outlook, buying advice and silver checks
Experts remain optimistic about silver’s outlook. Kedia Advisory director Ajay Kedia says strong demand trends suggest prices could rise further. He expects silver to reach Rs 2.10 lakh per kg by the end of this year and potentially touch Rs 2.50 lakh per kg within a year. For buyers and investors, key takeaways include:
- Jewellery buyers can still consider purchases, as prices may rise further
- Retail investors should prefer silver ETFs via monthly SIPs over lump-sum bets
- Physical buyers can opt for silver coins for long-term holding
To identify genuine silver at home:
- Magnet test: real silver does not stick to magnets
- Ice test: ice melts quickly on pure silver
- Smell test: real silver has no copper-like smell
- Cloth test: rubbing with white cloth leaves a black mark on genuine silver
