Silver jumps 30% in 2025 so far: Will it reach Rs 2 lakh or correct soon?

Silver prices have been on a remarkable rally in recent months, and with the precious metal continuing to climb, the Rs 2 lakh per kilogram mark is beginning to look increasingly realistic.

With silver crossing Rs 1,14,000 in Indian markets for the first time—driven by a combination of global and domestic factors—analysts now project a short-term target of Rs 1,40,000, with the potential to hit Rs 2,00,000 by 2026.

“It would not be unrealistic for silver to retest levels around Rs 1,20,000/kg in the short term and potentially reach Rs 2,00,000/kg by 2026, given the bullish industrial momentum, favourable macro conditions, and sustained investor interest,” says Renisha Chainani, Head of Research at Augmont. She believes silver consumption in India will remain strong, particularly for jewellery and silverware during the festive season.

Silver’s rally fueled by multiple demand drivers

Silver has posted impressive gains of over 30% this year, trading at nearly a 14-year high in international markets. For the first time since September 2011, silver prices have surpassed $39 per troy ounce, breaking through key historical resistance levels.According to Manoj Kumar Jain of Prithvifinmart Commodity Research, silver’s dual role as both a precious and industrial metal is driving strong demand. The metal has been in a net deficit for the past four to five years, and some studies predict this shortfall could exceed 700 million ounces by 2025.
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Silver’s Rally Driven by Green Demand, Investment Surge

Among the key factors driving silver’s surge is growing industrial demand, particularly due to the global transition from fossil fuels to greener alternatives. Silver plays a pivotal role in the renewable energy sector, with increasing use in solar panels, electric vehicles, and electronics.
A rising demand for silver in green technologies, combined with higher gold prices nudging consumers toward silver ornaments, has significantly contributed to the metal’s bullish run.

Moreover, silver’s role as a hedge against inflation has sparked strong interest in silver ETFs, which have surged in popularity among investors. In India, ETF holdings recently crossed 1,200 metric tonnes.

The global macroeconomic environment — characterized by geopolitical tensions and uncertainty in U.S. trade policies — has further fueled demand. The weakness in the U.S. dollar, exacerbated by trade tariffs and a slowing American economy, has made silver a preferred investment for those looking to diversify away from traditional assets.

Domestically, the depreciation of the Indian rupee against the dollar has also contributed to rising silver prices, giving an additional boost to Indian investors.

Silver Price Outlook: Rs 2 Lakh/kg by 2026

Silver is currently trading above $39 per troy ounce in the international market. Analysts foresee the rally continuing, with prices potentially reaching $42 per ounce in the short term.

In Indian markets, this translates to around Rs 1,20,000 per kilogram. According to Manoj Kumar Jain of Prithvifinmart Commodity Research, based on technical indicators, silver could touch Rs 1,20,000/kg in the near term, with the current rally likely to pause around $42 per ounce.

However, the long-term outlook remains bullish. Analysts project silver could test $50 per ounce (Rs 1,40,000/kg) by March 2026. By the end of 2029, prices could climb to $65–70 per ounce, or Rs 1,80,000–2,00,000 per kilogram.

Renisha Chainani, Head of Research at Augmont, also points to strong domestic consumption trends, especially for jewellery and silverware during festive seasons. She forecasts that silver could retest Rs 1,20,000/kg in the near term and sees a strong possibility of it touching Rs 2,00,000/kg by 2026, driven by bullish industrial momentum, favourable macroeconomic conditions, and sustained investor interest.

Also read: Buyers keep hands off gold, as sales plunge 60% in June, steepest drop since Covid

With silver steadily advancing toward Rs 2 lakh per kilogram, driven by a powerful combination of industrial demand, investor interest, and supportive macroeconomic factors, the metal’s bull run appears far from over.

As the clean energy transition accelerates and geopolitical uncertainties persist, silver’s dual role as an industrial essential and investment hedge continues to strengthen, setting the stage for potential new highs in the years ahead.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)