Silver rate today hits record high on MCX; global prices cross $65 for first time — Is it right time to buy?

Silver rate today: Silver prices soared to fresh all-time highs on Wednesday, December 17, rising over 4% on the MCX and extending a breakout rally that has captured global market attention. The surge comes as weaker US labour data reignited expectations of Federal Reserve interest rate cuts, weakening the dollar and boosting demand for precious metals.

Around 9:20 am, MCX silver was trading 3.38% higher at ₹2,04,445 per kg, touching a lifetime high. In contrast, MCX gold (February) slipped 0.21% to ₹1,34,129 per 10 grams, indicating a divergence between the two precious metals.

Globally, spot silver climbed 2.8% to an all-time high of $65.63 an ounce, becoming the first instance of the white metal crossing the $65 threshold. Spot gold edged 0.4% higher to $4,321.56 an ounce by 0230 GMT, supported by the weaker US dollar.

The rally followed US data showing the unemployment rate rose to 4.6% in November, reinforcing expectations of further monetary easing. A softer labour market, combined with a dovish tilt from the Federal Reserve last week after its final quarter-point rate cut of the year, has strengthened demand for non-yielding assets.

Geopolitical tensions also added fuel to the rally. President Donald Trump ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, escalating pressure on President Nicolas Maduro amid growing military activity in the region. This geopolitical flare-up lifted safe-haven buying and amplified the momentum in silver.

A currency trader based in Singapore noted that “the unemployment data has definitely helped precious metals and weakened the dollar, prompting investors to look for other asset classes offering higher returns as a hedge against risk.”

The dollar index hovered near a two-month low, making U.S.-dollar-priced bullion more attractive to overseas buyers.

Is it the right time to buy silver? Experts weigh in

Silver’s explosive rally has led investors to question whether now is the right moment to enter the market. Analysts remain divided, although most agree silver’s dual identity—precious metal and industrial commodity—makes it uniquely positioned in the current macro environment.

Rajkumar Subramanian, Head – Product & Family Office at PL Wealth, highlighted silver’s evolving role in portfolios. “Silver is emerging as a strategic diversifier for Indian investors, offering higher volatility than gold but also far higher upside during commodity upcycles, thanks to rising industrial demand and increasing retail participation,” he said. Subramanian noted that silver demand in India is increasingly tied to growth in solar manufacturing, EVs, electronics and digital infrastructure.

Offering a more cautious view, Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, said silver’s stellar run may be losing steam. “Silver has already delivered a strong performance, but given rising yields and expectations of higher inflation, we believe gold could outperform silver from a medium-term perspective, and investors building a precious metals portfolio should prioritise gold at this stage.”

However, long-term structural forces remain supportive. NS Ramaswamy, Head of Commodity & CRM at Ventura, emphasised that silver’s supply tightness and shifting demand profile could push prices significantly higher. “Silver could rally to $100 an ounce—around ₹3 lakh per kg—but investors must remember silver is prone to spectacular rallies followed by steep declines, and when supply finally catches up with demand, that will mark the signal of Peak Silver,” he cautioned.

Ramaswamy added that silver is increasingly poised to become a “next-generation metal”, driven by surging consumption in electronics, renewable energy, AI, data centres and electric vehicles, while also benefiting from its inclusion in the US critical mineral list.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.