Silver has stormed past records, delivering one of its sharpest rallies in recent years and forcing investors to reassess its place in portfolios long dominated by gold.

Prices jumped more than 15 per cent last week, pushing silver futures on the Multi Commodity Exchange (MCX) to a fresh high of Rs 2.42 lakh per kilogram.

The surge was fuelled by strong industrial demand, expectations of US interest rate cuts next year and growing worries over supply disruptions.

The domestic rally tracked a similar run in global markets, where silver hit an all-time high of USD 79.70 per ounce, rising over 11 per cent in a single session on Friday.

On MCX, silver futures for March 2026 delivery rose for the fifth straight day, climbing by Rs 18,210, or 8.14 per cent, to touch a record Rs 2,42,000 per kg before settling at Rs 2,39,787 per kg.

In a holiday-shortened week, prices jumped by Rs 31,348, or 15.04 per cent, from Rs 2,08,439 per kg since December 19, as traders stepped up buying amid high volatility.

The scale of the move becomes clearer over a longer horizon. During the calendar year, silver prices have risen by Rs 1,52,554, or nearly 175 per cent, from Rs 87,233 per kg recorded on December 31, 2024.

Market participants say the rally reflects a shift in how silver is being valued.

“Silver is no longer trading merely as a precious metal like gold. Its indispensable role in high-performance technology, combined with shrinking above-ground stocks and non-negotiable industrial demand, is reshaping its fundamentals,” Rahul Kalantri, VP, Commodities at Mehta Equities, told PTI.

Global markets echoed the same trend. On Comex, silver futures crossed the USD 79 per ounce mark for the first time.

The March 2026 contract surged USD 8.02, or 11.2 per cent, to a record USD 79.70 per ounce before ending at USD 77.19. Over the past week, prices climbed by USD 9.71, or 14.4 per cent.

Since the start of the year, silver has risen by USD 47.95, or 164 per cent, from USD 29.24 per ounce recorded on December 31, 2024.

Kalantri said prices have been supported by a mix of industrial consumption, ETF inflows, physical demand and capital shifting from equities to commodities.

“As a result, silver is structurally decoupling from gold. We believe silver offers a better investment opportunity for 2026, given its strong structural drivers,” he said.

Supply concerns have added momentum to the rally. Commodities market experts point to tightening global availability, especially in China, the world’s largest consumer of silver and a major hub for solar panels, electronics and electric vehicles.

Analysts note that Beijing has announced export restrictions on silver starting January 1, 2026, requiring companies to apply for licences. The measures are expected to stay in place through 2027 and could disrupt global supply chains.

Looking ahead, analysts see limited relief on the supply side.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, said industrial demand could continue to outstrip supply, while a weak dollar and higher safe-haven demand may push Comex silver prices to USD 100 per ounce in 2026.