Silver Prices Hit Record High to ₹1.44 Lakh per Kg – What is Driving The Rally?

Silver futures on the Multi-Commodity Exchange (MCX) hit a record high on Monday, September 29, rising more than 1% to ₹1.44 lakh per kg during early trading. The uptick mirrored gains in global markets, where spot silver climbed by 0.9% to ₹1,43,470 per kg as of 02:20 pm IST. 

Silver Prices Touch Record High: Silver Outperformed Nifty 50 

On a year-to-date(YTD) basis, the spot price of silver has jumped 63.75% from ₹87,610 per kg to ₹1,43,470 per kg, outperforming gold and the Indian benchmark index Nifty 50. The gold price has surged 50.62% and the Nifty 50 logged gains of around 3.97% on a YTD basis.

Key Reasons Driving the Rally in Silver Prices

Here are some of the key factors that are helping Silver prices rally. 

Global Factors Driving The Rally

International silver prices strengthened amid expectations of monetary easing in major economies, ongoing geopolitical tensions, and renewed investor interest in precious metals. Silver’s appeal as both a safe-haven and industrial metal has helped it outperform many other asset classes this year. 

As per the reports, the recent surge reflects a combination of overseas cues and currency weakness, as a softer rupee increases the cost of imported commodities like silver.

Industrial Demand Supports Growth

Apart from its safe-haven appeal, silver is seeing consistent industrial demand. Its use in solar panels, electronics, semiconductors, and electric vehicles continues to grow, reinforcing its role in the green energy and technology sectors. Silver’s long-term growth is linked to global clean energy transitions and industrial demand.

Investor Flows Add Momentum

Investor interest remains strong, with silver-backed exchange-traded products seeing healthy inflows and bullish positions in futures markets. Despite volatility in other asset classes, market sentiment for silver has stayed positive.