Silver prices in India have climbed dramatically in a short span. In the first 18 days of 2026, the rate jumped from about ₹2,38,000 per kilogram to roughly ₹2,95,000 per kilogram, a gain close to ₹57,000 in under three weeks. This represents a significant acceleration following already strong performance in 2025.
What’s Driving the Rally?
Multiple factors are underpinning the rally:
- Industrial Demand: Silver’s use in solar energy, electronics, electric vehicles, and advanced manufacturing has grown, tightening physical supply.
- Investor Interest: Rising participation from retail and institutional investors seeking safe haven and diversification has buoyed prices.
- Global Market Trends: Worldwide macro conditions like ongoing geopolitical uncertainty and central bank buying have strengthened precious metal appeal.
Market Impact
The sharp rise has influenced several market segments:
- Equity Response: Shares of companies linked to silver production and trading, such as metal producers and miners, saw gains as investor sentiment turned bullish.
- Jewellery Sector: Retail jewellery buyers face higher input costs, particularly relevant during wedding and festive seasons.
- ETFs & Commodities: Silver-linked exchange-traded funds have attracted increased inflows, reflecting broad investor engagement.
Outlook and Risks
Analysts point out that while demand fundamentals remain strong, silver is inherently more volatile than gold. Price swings can be sharp. Some technical forecasts suggest further upside potential, possibly reaching new highs, while cautionary scenarios warn of sharp corrections under adverse conditions.
What Investors Should Consider
- Volatility: Expect large price fluctuations; discipline and risk management are critical.
- Long-Term Perspective: Silver may serve as a strategic long-term asset but may not suit short-term speculation for all investors.
