Rama Krishna Sangem
Silver prices in India touched a record Rs 1.50 lakh per kg on September 29. The festive demand is expected to continue for some more time, till at least Dipavali. But other factors like global tensions, rising gold prices and more usage for industrial purposes too contribute to the rise in silver prices..
In the second week of September the domestic benchmark climbed to Rs 1.30 lakh per kg, marking an increase of Rs 3,000 from the previous session.
For smaller denominations, 100 grams of silver was priced at Rs 13,000, higher by Rs 300. Globally, silver surged to a 14-year high, driven by expectations of aggressive US Federal Reserve rate cuts, a weaker dollar, and falling Treasury yields. These macroeconomic factors have boosted the appeal of silver as both a precious metal and a strategic industrial commodity.
Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), stressed silver’s dual role. “Beyond its value as a precious metal, silver has immense industrial relevance. Persistent supply deficits, shrinking inventories, and rising consumption in solar energy, electric vehicles, and electronics are bolstering demand,” she noted. Kamboj added that near-term price targets are now being set between Rs 1.35 lakh and Rs 1.50 lakh per kg.
From a technical standpoint, Rahul Kalantri, VP Commodities at Mehta Equities, pegged support for silver at Rs 1.23–Rs 1.24 lakh per kg and resistance at Rs 1.26–Rs 1.27 lakh per kg. He highlighted that silver has consistently outperformed gold over the last 12 months and even on a three-year basis, according to a recent Value Research (September 8, 2025) analysis. However, analysts continue to caution that silver’s sharp rallies often come with heightened volatility, unlike gold, which remains the more stable magnet for Indian investor inflows.
The most influential voice on silver’s prospects comes from Motilal Oswal’s Precious Metals Quarterly Report, which presents a distinctly bullish case. The brokerage recommends buying silver on dips, citing a confluence of factors: rising industrial demand, strong investment inflows, and persistent supply deficits.
The report points out that industrial usage now accounts for nearly 60% of global silver demand, with applications expanding rapidly in solar power, electric vehicles, 5G infrastructure, and advanced electronics. China’s role is particularly significant: its photovoltaic (PV) module exports reached 127 GW in the first half of 2025, fueling global silver consumption in solar applications.
Silver investment
On the investment side, silver continues to attract record inflows into ETFs and mutual funds. Notably, Saudi Arabia’s central bank allocated $40 million into silver-linked ETFs, while Russia committed $535 million over three years to build state silver reserves. India has also emerged as a strong demand driver, with silver imports exceeding 3,000 tonnes in H1 2025, significantly boosting market activity.
