Silver rate today: The unstoppable rally in the silver prices drove the white metal past the ₹2,50,000 mark on the Multi Commodity Exchange (MCX) for the first time on Monday, December 29.
The rally in silver prices coincides with the surge seen in international markets. The silver rate today topped the $80 mark earlier this morning for the first time before retreating amid profit-taking in the white metal, following a massive surge of over 180%.
Silver has gained 181% year-to-date, outpacing gold by a significant margin to emerge as the best-performing asset this year. Silver is now more valuable than the world's most valuable company, Nvidia, as its market cap surged to $4.65 trillion. Nvidia is currently valued at $4.63 trillion.
On the MCX, Silver March futures rose 5.99% to an all-time high of ₹254,174 per kg. Around 9.40 am, the silver price today was at ₹251,746, up ₹11,959 or 4.99%. However, in the international market, spot silver lost 1.3% to $78.12 per ounce, after hitting an all-time high of $83.62 earlier in the session.
What's driving silver prices higher this year?
The rally in silver is supported by supply constraints, strong industrial demand, and bets on further US interest rate cuts.
Silver has been in structural deficit for the past seven years, while the industrial demand surged in 2025 on account of solar adoption, renewable energy rollouts, electric vehicles, and electronic production, creating a demand-supply mismatch and boosting the prices of the white metal.
Easing of interest rates by the US Federal Reserve and further anticipation of rate cuts in 2026 made non-yielding assets like silver and gold more attractive. Silver has also benefited from safe haven flows on account of the uncertain situations created by Donald Trump globally, by the imposition of tariffs, and the Russia-Ukraine war situation.
Time to book gains or stay put in silver?
With an astounding rally in silver, investors will remain anxious as to adjust their portfolio to increase allocation to the precious metals basket.
Prathamesh Mallya, DVP Research - Non Agri Commodities and Currencies at Angel One, said, looking at the factors such as slowdown in the US, tariff uncertainty, US-China trade tensions, monetary factors (rate cuts), inflows into gold and silver ETFs, supply-demand gaps, the momentum will definitely remain on the higher side.
However, on a cautious note, Mallya said that the volatility can lead to meaningful correction, as has happened in previous market crashes of silver.
With underlying volatility, Mallya expects silver to fall to ₹150,000 per kg in the base case scenario, while the potential upside is seen at ₹275,000 in 2026.
Given the likely environment of slower growth, easing policy and geopolitical risks, portfolios should tilt toward resilience with optional upside, opined Nirpendra Yadav, Sr. Commodity Research Analyst at Bonanza. He recommended investors to maintain 15%-25% in precious metals in their portfolios, out of which 40% should be given to silver.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
