Silver Price Today Hits Record High: Jumps ₹8,000 in a Day — Will the Rally Continue?
ilver prices in India have surged to an all-time high, grabbing the attention of investors, traders, and bullion buyers alike. On Wednesday, December 17, 2025, silver witnessed an exceptionally sharp rise, gaining over ₹8,000 in a single day. The steep jump has sparked an important question in the market: Is silver heading towards ₹2.40 lakh per kg in the coming months, or are there risks ahead?
Let’s take a closer look at what’s driving this rally and what experts expect going forward.
Silver Touches Lifetime High on MCX
On the Multi Commodity Exchange (MCX), silver futures for March delivery surged by ₹8,179, or 4.14%, reaching a historic level of ₹2.05 lakh per kilogram. Just a day earlier, on December 16, silver had settled near ₹1.97 lakh per kg, highlighting the intensity of the sudden spike.
Meanwhile, the spot price of silver on MCX also jumped sharply. By around 2:15 PM, spot silver was trading at approximately ₹2,03,975 per kg, up by more than ₹6,100, marking its highest level ever in the domestic market.
Global Rally Lifts Domestic Prices
The strong rally in Indian silver prices has been largely supported by bullish global trends. In the international market, COMEX silver futures crossed the $66 per ounce mark for the first time, rising nearly 4.65% to around $66.27 per ounce.
Experts point out that tight global supply conditions and growing expectations of interest rate cuts in the United States next year have boosted demand for precious metals, including silver. When interest rates are expected to fall, non-yielding assets like silver often become more attractive to investors.
Weak US Data Pressures Dollar, Supports Silver
According to market analysts, recent weak employment data from the US has put pressure on the dollar and US Treasury yields. A softer dollar generally benefits commodities priced in dollars, making them cheaper for global buyers and pushing prices higher.
Motilal Oswal Financial Services’ precious metals analyst Manav Modi highlighted that silver is currently witnessing backwardation, a market condition that signals a serious supply shortage. Backwardation occurs when the spot price of a commodity trades above its futures price, reflecting strong immediate demand. This imbalance helped silver hit record highs early in the trading session.
Weak Rupee Adds Strength to Indian Prices
Domestic silver prices have also been supported by the weak Indian rupee. According to Rahul Kalantri of Mehta Equities, fluctuations in the international bullion market have been offset by currency weakness, keeping Indian prices firm.
He added that upcoming US inflation indicators such as CPI (Consumer Price Index) and PCE (Personal Consumption Expenditure) data could play a key role in determining the near-term direction of silver and other precious metals.
Silver Becomes Costlier Than Crude Oil
In a striking development, Choice Broking’s Aamir Makda noted that silver has now become more expensive than a barrel of WTI crude oil, a rare phenomenon seen after several decades. According to him, this shift highlights silver’s growing strategic importance in the global economy.
Makda also pointed out that silver has been facing a global supply deficit for the fifth consecutive year, meaning demand continues to outpace supply. Additionally, since silver prices are dollar-denominated, a weaker rupee further inflates domestic prices.
Rising Role of Silver in Investment Portfolios
Experts believe silver’s importance in investment portfolios is increasing. Rajkumar Subramaniam, Head – Products & Family Office at PL Wealth, said that while gold remains a traditional hedge, silver is emerging as a leveraged play on global growth and energy transition.
The growing use of silver in solar energy, electric vehicles, semiconductors, and electronics has significantly boosted industrial demand. At the same time, retail investors are also increasing their exposure to silver, strengthening its position as a portfolio diversifier alongside gold.
Can Silver Reach ₹2.40 Lakh Per Kg?
According to Axis Securities, if silver prices correct to the ₹1.70–1.78 lakh per kg range, it could present a better buying opportunity. The brokerage has set a target of ₹2.40 lakh per kg for silver in 2026.
From a technical perspective, silver appears strong. Axis Securities noted that a long consolidation phase from 2011 to 2025 has ended, with monthly charts showing a clear rounding bottom breakout. Key long-term indicators like the 20-month and 60-month exponential moving averages (EMAs) are trending upward, and prices remain well above these averages — a sign of a potential new bullish cycle.
Bottom Line
Silver’s sharp rally is being driven by a mix of global supply constraints, industrial demand, supportive macroeconomic signals, and currency weakness. While experts remain optimistic about long-term prospects, they also caution investors to be mindful of volatility and global economic data.
As always, investors should evaluate their risk profile and seek professional advice before making investment decisions.
