Silver has crossed a level few thought it would touch so soon.
On Monday, the metal breached the Rs 3 lakh-per-kg mark for the first time in futures trade on the Multi Commodity Exchange (MCX), as investors rushed to safe-haven assets amid tariff-related tensions linked to Greenland and a weakening US dollar.
On the MCX, silver futures surged by Rs 16,438, nearly 6 per cent, to hit a record Rs 3,04,200 per kilogram. The rally has been swift. Over the past week alone, silver futures have jumped almost 14 per cent, gaining Rs 35,037.
Since the start of 2026, prices have risen by Rs 68,499, or 29 per cent, from Rs 2,35,701 per kilogram recorded on December 31, 2025. Gold has moved in step.
February gold futures climbed by Rs 2,983, or 2.09 per cent, to reach a fresh record of Rs 1,45,500 per 10 grams on the MCX. Over the previous week, gold prices rose by Rs 3,698, or 2.7 per cent.
“Both silver and gold have set new records, crossing Rs 3,00,000 per kg and Rs 1,45,000 per 10 grams, respectively, on the MCX,” said Satish Dondapati, Fund Manager, Kotak Mutual Fund. Dondapati attributed the rise to a mix of global factors.
He said the uptrend in precious metals was driven by persistent geopolitical uncertainty, a weaker US dollar, supply-side concerns and firm investment demand.
The recent tariff announcements by the US against a few European nations, following developments related to the Greenland issue, have also “lent price support”, he added. The longer-term gains underline how sharply the market has shifted.
Dondapati noted that silver prices have surged over 170 per cent, while gold has gained over 70 per cent. According to him, silver’s dual role as an industrial and investment metal has worked in its favour in the current macroeconomic environment.
International markets echoed the rally. On Comex, silver futures for March delivery jumped USD 5.81, or 6.56 per cent, to a record USD 94.35 per ounce.
Gold for February delivery climbed by USD 102.6, or 2.23 per cent, to an all-time high of USD 4,698 per ounce.
On a weekly basis, silver added USD 9.2, or 11.6 per cent, while gold gained USD 94.5, or 2.09 per cent, supported by the weaker greenback and rising geopolitical tensions.
So far in 2026, silver has delivered 33.6 per cent returns in overseas markets, rising from USD 70.60 per ounce at the end of 2025 to USD 94.35 per ounce.
“Silver has delivered nearly 30 per cent returns, mounting on the momentum of 2025. The white metal has reached around USD 94 per ounce, a level once considered unthinkable, driven by a ‘perfect storm’ of industrial scarcity and geopolitical shifts,” said Aamir Makda, Commodity & Currency Analyst, Choice Broking.
Makda pointed to structural demand drivers that are reshaping silver’s outlook.
He said the metal’s growing industrial role is being fuelled by three major trends, expanding solar photovoltaic capacity, rising demand from electric vehicles and the rapid build-out of AI and data centre infrastructure that relies on silver-based components.