Silver Price Hits Historic High Above ₹3 Lakh: Should Investors Buy, Sell, or Hold Now?

Silver has created history in the Indian commodity market by crossing the ₹3 lakh per kilogram mark for the first time on the Multi Commodity Exchange (MCX). The precious metal has surged sharply amid rising global geopolitical tensions, strong safe-haven demand, and robust industrial consumption. As prices touch record highs, investors are now facing a crucial question: Is this the right time to buy silver, book profits, or continue holding?

Record-Breaking Rally in a Single Session

Silver witnessed an extraordinary jump within just one trading session. In the previous session, silver had closed at ₹2,87,762 per kg. On January 19, it surged to an intraday high of ₹3,04,200 per kg, marking a massive gain of around ₹16,438 per kg, or nearly 5.7 percent in a single day. The day’s low was ₹2,93,100, indicating strong buying interest even at elevated levels.

Over the past one year, silver prices have risen by more than 200 percent, underlining the strength of the ongoing rally. Earlier, on January 15, 2026, silver had hit its previous record high of ₹2,92,960 per kg, which has now been decisively surpassed.

Global Markets Also at All-Time Highs

The rally is not limited to domestic markets. In the international market, COMEX spot silver touched an all-time high of $94.36 per ounce. Later, it traded slightly lower around $93 per ounce, still reflecting a gain of over 5 percent compared to the previous close.

Although there are early signs of some easing in physical supply, with silver reportedly moving out of COMEX warehouses toward Europe, prices have remained firm. High prices may put marginal pressure on industrial demand, but overall global interest in silver continues to remain strong.

Geopolitical Tensions Fuel Safe-Haven Demand

One of the key drivers behind this sharp surge is escalating global geopolitical uncertainty. Market sentiment turned cautious after US President Donald Trump warned of imposing additional tariffs of up to 25 percent on European countries if disputes related to Greenland remain unresolved.

Such statements have increased risk aversion among investors, prompting a shift toward traditional safe-haven assets like gold and silver. This renewed demand has directly supported prices at both domestic and global levels.

Industrial Demand Adds Structural Support

Silver’s rally is not driven by safe-haven buying alone. Strong industrial demand is playing an equally important role. The metal is widely used in sectors such as solar energy, electronics, and electric vehicles (EVs). As global energy transition and technology adoption accelerate, silver consumption from these industries continues to rise.

Notably, silver prices in Shanghai are trading at nearly $10 per ounce higher than in London, highlighting regional supply-demand imbalances. In China, speculative and investment demand also remains resilient, adding further momentum to prices.

Rally Gained Momentum Since October 2025

According to market experts, the current surge is part of a broader trend rather than a short-lived spike. Silver’s strong upward move began around October 2025, when prices were near $45 per ounce. By December, prices had already crossed $82 per ounce, and the rally has continued into 2026.

Limited supply growth combined with structurally strong demand is expected to provide long-term support to silver prices.

Buy, Sell, or Hold: What Should Investors Do?

Justin Khu, APAC Senior Market Analyst at VT Market, believes that silver crossing ₹3 lakh per kg is more than just a psychological milestone. According to him, it reflects a structural uptrend supported by supply constraints, industrial demand, and global uncertainty.

However, experts also caution against aggressive buying at record highs.

• Short-term traders may consider booking partial profits at current levels to manage risk.

• Long-term investors can continue to hold silver as a hedge against inflation and economic uncertainty, but fresh buying may be more suitable on price corrections rather than at peak levels.

Volatility Likely to Continue

Looking ahead, markets will closely track key US economic indicators such as PCE inflation data and GDP figures. According to Augmont’s latest report, silver is currently witnessing intense speculative activity on both the buying and selling sides. This could lead to sharp and sudden price swings in the near term.

Conclusion

Silver’s long-term outlook remains positive, supported by global uncertainty, limited supply, and rising industrial demand. While short-term volatility is expected, many analysts believe silver will continue to play an important role in diversified investment portfolios. Investors should align their strategy with their financial goals, risk appetite, and investment horizon before taking any decision.

Disclaimer: This article is for informational purposes only. Investment decisions should be made after consulting a certified financial advisor.