Silver Hits Rs 2 Lakh For The First Time On MCX — What's Fuelling The Rally?

Silver futures scaled a fresh record on Friday, as the metal's futures crossed the Rs 2 lakh per kilogram-mark for the first time on India's Multi Commodity Exchange (MCX).

The futures, slated for March 2026 delivery, were priced at Rs 2,00,021 per kg at around 2:34 p.m. The white metal saw fresh demand on the back of supply deficit and higher industrial demand.

"Demand for silver has been boosted by sectors like solar energy, electric vehicles and semiconductors which continue to expand. Silver benefits from investor rotation into commodities and strong momentum in other metals which has lifted overall sentiment," according to Axis Mutual Fund.

Silver has delivered a landmark 2025, doubling in value as a series of powerful catalysts aligned, according to Kedia Stocks & Commodities Research.

This started with the US critical-mineral designation and tariff fears, repeated global short squeezes, decade-low Shanghai inventories, tight London vaults near 26,254 tonnes, and massive SLV inflows of 324 tonnes also weighed in.

This year, Silver faced its fifth consecutive year of supply squeeze, amplified by a historic shortage in London in October. Inventories in Shanghai are near their lowest level since 2015, adding to bullish momentum, while weak US data further fuelled the demand.

With a strong cup-and-handle breakout above Rs 1,73,965, silver was firmly on track to test the Rs 2-lakh mark in 2025, according to the analyst.

Spot silver prices in India stand at Rs 199,090, according to Bullions.co.in. In Delhi, the rate of Silver per kg stood at Rs 198,390 and at Rs 198,730 in Mumbai.

The spit price in Chennai stood at Rs 199,310 while the white metal was trading at Rs 198,470 in Kolkata. Globally, spot silver was trading near its 52-week high at $63.97 according to Investing.com.