Silver Rally: MCX Rates Hover Near Rs 1.7 Lakh Mark After Hitting Fresh Record

A day before Dhanteras, silver prices jumped to a fresh record on the MCX, tracking positive global cues. MCX Silver December futures hit a record high of Rs 1,70,415 per kg, rising by over Rs 2,750, or 1.6%.

Concerns about US credit quality and escalating tensions between Washington and Beijing pushed investors toward safe-haven assets. Silver surged past its previous all-time high from 1980, a record set on a now-defunct Chicago Board of Trade contract. The metal is currently trading 0.65% at Rs 1,68,760 per kg.

In the global market, the white metal reached a new peak of $54.38 per ounce on Friday before pulling back slightly. Meanwhile, palladium and platinum also recorded significant weekly gains amid the broader rally in precious metals.

Concerns about a lack of liquidity in London have sparked a worldwide hunt for silver, with benchmark prices soaring to near-unprecedented levels over New York, as reported by Bloomberg. That’s prompting some traders to book cargo slots on transatlantic flights for silver bars, an expensive mode of transport typically reserved for gold, to profit off higher prices in London.

Hitesh Subhash Jain, chairman of the Zaveri Bazar Welfare Association, said silver seems to be emerging as the new gold. He confirmed that a premium of over Rs 30,000 was applicable on silver and that traders have stopped taking fresh orders for Dhanteras. Despite the supply crunch, he said he remains optimistic about silver prices and believes buyers who hold the metal until 2030 could see significant returns.

One trader said demand has been so strong that a festival sale planned for seven to ten days saw stocks run out within just three days. The buying frenzy for silver, they noted, is not limited to India. Countries such as Australia, Turkey, and China are also witnessing a similar surge in demand, leading to a massive backlog in deliveries and a severe global shortage.