Silver prices in India have skyrocketed to unprecedented levels, marking a historic moment for the precious metal. For the second consecutive day, silver has set a new silver price all-time high, crossing the ₹2 lakh per kilogram threshold and underscoring a dramatic rally in the bullion market.
According to the India Bullion and Jewellers Association (IBJA), the price of silver jumped by ₹1,479 on Thursday, 18th December, to close at ₹2,01,120 per kg. This follows Wednesday’s session where silver briefly pierced the ₹2 lakh mark for the first time, reaching ₹2,00,750, before settling at ₹1,99,641 per kg. So far this year, the white metal has witnessed a staggering increase of ₹1,15,233, reflecting intense demand and supply pressures globally.
Silver Price Soars to Record High
The relentless surge has made silver one of the top-performing commodities this year. Market analysts note that the current silver price record high is not an isolated event but part of a sustained upward trend. The trading community and jewellers across major hubs like Mumbai, Delhi, and Ahmedabad reported frenetic activity, with both investors and industrial buyers scrambling to secure stocks. This price movement is based on official IBJA rates, which serve as a benchmark for the domestic market.
4 Key Drivers Behind Silver’s Record Rally
What is fueling this extraordinary rally? On-the-ground conversations with traders, industry bodies, and economic experts point to four major factors that have converged to push silver to peak levels.
- Surging Industrial Demand
Silver is no longer confined to jewellery and silverware. Its extensive use in high-growth sectors like solar panel manufacturing, consumer electronics, and electric vehicles (EVs) has fundamentally altered demand dynamics. The global push for green energy and technological advancement has led to a structural shift, making industrial consumption a primary price driver.
- Fears Over Trump’s Tariff Policies
Anticipation of potential import tariffs under a possible second Trump administration in the US is creating ripples. American manufacturing companies, fearing future trade restrictions, are reportedly building substantial silver inventories. This pre-emptive stockpiling is tightening global silver supply, adding upward pressure on prices.
- Manufacturers’ Advance Purchasing
Downstream manufacturers, particularly in electronics and automotive sectors, are engaging in advance purchases to hedge against any potential disruption in production or supply chains. This forward buying ensures that demand remains robust in the coming months, sustaining the bullish momentum in the precious metals market.
- Rising Investment Inflows
Investment demand for silver has surged, with retail and institutional investors increasingly turning to Silver Exchange-Traded Funds (ETFs) and other financial instruments. This influx of capital into paper silver reflects growing confidence in its value as an inflation hedge and industrial asset, further amplifying the price uptick.
Gold Also Gains Amid Precious Metals Rally
The buoyancy in the bullion market isn’t limited to silver. Gold, the traditional safe haven, also edged higher. On Thursday, 24-carat pure gold rose by ₹157 to reach ₹1,32,474 per 10 grams. Last Monday, 15th December, gold had touched its own record high of ₹1,33,442 per 10 grams. The simultaneous strength in both gold and silver prices indicates a broad-based optimism in commodity investments, driven by macroeconomic uncertainties and currency fluctuations.
Market Watch: The Road Ahead
As silver prices chart new territory, all eyes are on international cues, including central bank policies, currency movements, and global industrial output data. The current trend highlights the evolving narrative of silver from a mere ornamental metal to a critical industrial component and a strategic investment. For daily updates on commodity prices and in-depth market analysis, keep following this space.
Disclaimer: The information provided in this article is for educational and informational purposes only. It is based on market data and reports from cited sources. It should not be construed as financial, investment, or trading advice. Readers are advised to consult with a qualified financial advisor before making any investment decisions.