“With strong renewable energy support and a tight supply position, silver is maintaining its consistency from recent weeks,” said Aksha Kamboj, vice president of the India Bullion & Jewelers Association and executive chairman of Aspect Global Ventures.On the international market, silver reached a high of $75 per troy ounce, which is an unprecedented increase in such a short time, according to bullion dealers.
Hareesh V, Head of Commodity Research, Geojit Investments, said, “Silver has surged to historic highs, crossing ₹2,33,000 per kg in India and testing the psychological level of $75 per ounce in the overseas market. This rally reflects a confluence of factors such as robust industrial demand, tighter global supply and increased investor interest amid economic uncertainties. With central banks taking an accommodative stance and geopolitical risks persist, Silver’s appeal as a hedge against inflation and currency volatility remains intact. The sharp rise underlines silver’s dual role as a safe haven and a key industrial commodity. Meanwhile, the current breakout could pave the way for further upside potential if macroeconomic conditions remain favorable for precious metals.
The sharp rally in gold and silver this year is the result of several global and domestic forces working together. Global economic uncertainty, characterized by geopolitical tensions, war situations and a slowdown in major economies, has driven investors worldwide to look for safe-haven assets. Gold, long considered the ultimate safe haven, has seen strong buying interest as a result, the All India Gem & Jewelery Domestic Council (GJC) said.
Another important factor is the expectation of interest rate cuts by the United States. Once markets sensed that the Federal Reserve might cut interest rates in the coming months, gold’s appeal rose sharply, as non-interest-bearing assets tend to gain value faster in such circumstances. Complementing this momentum, the weakness of the US dollar has naturally pushed up gold and silver prices internationally. Central banks around the world have also played a crucial role. Countries such as China, Turkey and India have increased the gold component in their foreign exchange reserves, reinforcing the long-term bullish trend. Meanwhile, silver has benefited not only from its role as a jewelry metal, but also from its growing importance as an industrial metal. Demand for silver in solar panels, electric vehicles and the battery industry has risen rapidly, adding additional momentum to the price trajectory.
In India, strong physical demand during the wedding and festive season has further supported prices. Increasing purchases of precious metals as a safe investment option have also contributed to the upward trend.
Rajesh Rokde, Chairman of GJC, said: “The 2025 bullion market has been a stark reminder that precious metals are strategic assets and not speculative instruments. Gold’s historic rise is a direct reflection of global uncertainty. Silver has decisively evolved beyond tradition… and emerged as a pivotal metal powering the future through renewable energy, solar applications and electric mobility, while retaining its cultural and jewelery relevance. This year has firmly demonstrated that gold and silver are not just commodities traded on screens, but pillars of economic stability, cultural heritage and India’s journey towards technological and sustainable growth.”
Looking ahead, GJC believes that the uncertain global environment, expectations of rate cuts, dollar weakness, central bank purchases and industrial demand for silver will continue to drive both metals into a strong bullish trend. Although volatility may increase, the overall outlook for 2026 remains positive.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)
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