Silver crosses ₹3 lakh: Silver prices surge past ₹3 lakh, doubling in just 4 months! Why did the price jump by ₹13,000 in one go?

Silver is performing exceptionally well. It has doubled people's money in less than 4 months. On Monday, the price of silver on the Multi-Commodity Exchange (MCX) crossed the 3 lakh mark. In a single day, the price of silver surged by approximately Rs 13,500. The latest price of silver on MCX reached Rs 3,01,315 per kg after a jump of about 5%. These are the prices for the March delivery of silver. Meanwhile, gold saw a rise of about 2% or Rs 3,000. The MCX gold February delivery rate reached a new all-time high of Rs 1,45,500 per 10 grams.

Why the surge in silver prices?
A significant increase in global industrial demand. Increased demand as a safe-haven investment due to geopolitical tensions. Shortage in silver supply and volatility in the dollar-rupee exchange rate. The impact of US President Donald Trump's threat to acquire Greenland also played a role. The increasing possibility of a trade war between the US and Europe is also a major reason.

How did the money double in 4 months?
Silver prices have risen rapidly in a very short time. In less than 4 months, it has doubled investors' money. The silver futures price on MCX first crossed the Rs 1,50,000 per kg mark at the beginning of October 2025.  In the spot market, the price of silver in the Delhi spot market reached a historic level of Rs 1,50,000 per kg on September 29, 2025 (Monday). Today, January 19, 2026, silver prices have created new history. The March futures price on MCX reached a record level of Rs 3,01,315 per kg. This means it doubled investors' money within 3 months and 20 days.

Investing in Silver: 5 Important Questions and Answers
After the sharp rise in silver prices, investors have many questions. The most important question is whether it is still advisable to invest in silver. NDTV sent some questions to Ajay Kedia, MD of Kedia Advisory, regarding this, and his answers are presented below.

Question 1: What is the next major target for silver in the international market?

Answer: According to Kedia Advisory, the $100 level appears to be the next immediate target for silver in the near future. US tariff announcements on the European Union and supply concerns have created a bullish sentiment in the international market.

Question 2: How high can silver go in the domestic market (MCX)?

Answer: The impact of international signals will also be seen in the Indian market. On the domestic front, a new upside level of ₹3,30,000 can be seen for MCX Silver.

Question 3: What are the main reasons behind this sharp rise in silver prices?

Answer: There are several reasons behind this surge, as mentioned above. Kedia Advisory has also highlighted some of the major reasons. Increased industrial demand, supply disruptions due to Donald Trump's tariff policies, the slight weakness seen in the US dollar, the persistent shortage in metal supply, and continuous buying by investors through ETFs are some of the key reasons.

Question 4: What does the Gold-Silver Ratio indicate?

Answer: This ratio has fallen by about 53% from last year's level of 107. This decline in the ratio indicates that silver is outperforming gold. However, it is in an 'oversold' condition, which may lead to some profit-taking intermittently.

Question 5: Is it still safe to buy silver at the current high levels?

Answer: Although some profit-taking is possible at higher levels, supply-side risks and strong fundamentals are so compelling that silver is expected to maintain a strong upward trend in the near future.

What should be the investment strategy for silver?
Keep an eye on the target: You can plan your investment strategy keeping in mind the target of $100 internationally and ₹3,30,000 in the domestic market (MCX).

Buy on dips: Since the market is in an 'oversold' condition, prices may fall slightly due to intermittent profit-taking. Use such dips as buying opportunities.

Understand the fundamentals: Don't just look at the prices, but rely on strong factors like supply shortages and ETF buying, which will support prices in the long run.

Use the Gold-Silver Ratio: Given silver's superior performance, balance the ratio of gold and silver in your portfolio.

Geopolitical Developments: Closely monitor Donald Trump's tariff policies and supply chain-related news, as these are directly impacting prices.

Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.