New Delhi: Silver prices soared to a record high of ₹1,04,675 per kilogram on Thursday, marking a significant milestone for the precious metal. The surge follows silver breaching the ₹1 lakh mark on June 3, when it was trading at Rs 1,00,980 per kg.
Industry experts say the rally in silver was anticipated, especially in the wake of gold’s exceptional performance over recent months. “The rise in silver prices was expected, considering gold's outstanding rally, which created a favorable environment for silver,” said Rajesh Roke, Chairman of the All India Gem & Jewellery Domestic Council (GJC). He noted that despite silver's extensive use in industrial applications, its price trajectory had so far lagged behind gold.
Geopolitical tensions are also contributing to the spike in precious metal prices. Recent reports indicate Ukraine has launched drone strikes on Russian airfields, targeting military aircraft. Russian President Vladimir Putin has warned of retaliatory action, a development that could impact global markets.
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“This is a serious geopolitical threat and could further elevate silver prices,” said Roke. “Given the current uncertainty, there is a strong expectation that silver could see a massive price surge.”
From a market fundamentals standpoint, silver continues to show strength. The Silver Institute has projected a supply-demand deficit for 2025 — the fifth consecutive year of shortfall. Industrial demand, one of the key drivers, is set to reach record levels, buoyed by the global push towards green energy. Silver industrial fabrication is forecast to rise by 3%, crossing 700 million ounces for the first time.
Investment demand is also on an upward trajectory, expected to grow by 3% as investor confidence rebounds in key markets across Europe and North America.
With both geopolitical risks and industrial fundamentals aligning, silver is poised for continued momentum in the near term, analysts say.
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