Silver prices in India and around the world are making headlines. On Tuesday, silver was trading at Rs 1,11,700 per kg, slightly lower than Rs 1,13,080 per kg on the previous Tuesday. The September 5 futures for silver also moved slightly up by 0.03% to Rs 1,11,525 per kg. Meanwhile, in the United States, silver was trading at $38.11 per ounce on July 16.
Just a day earlier, on Monday, the MCX (Multi Commodity Exchange) silver futures for September 5 touched a record high of Rs 1,14,875. Even more, the December silver futures reached Rs 1,16,566 per kg — the highest ever. These prices show how strongly silver has been rising in the market lately.
Why Are Silver Prices Going Up?
There are a few key reasons why silver is becoming more expensive:
1. Strong Industrial Demand
Silver is not just a precious metal used in jewelry. It has many industrial uses, especially in solar panels, electronics, and electric vehicles. Today, about 60% of silver demand comes from industries. Because these sectors are growing quickly, the demand for silver has gone up a lot.
2. Low Supply
At the same time, silver supply is not increasing enough. There is a supply deficit, meaning the amount of silver being mined is less than what industries and investors need. This shortage has continued for five years in a row, making silver even more valuable.
3. More Investor Interest
Silver is also considered a good investment and a safe haven — especially when there is uncertainty in the economy. Many investors are now choosing silver because it has been performing better than gold recently.
One big sign of investor interest is the sharp rise in ETF inflows. (ETF stands for Exchange-Traded Fund, a type of investment.) In May alone, silver ETFs saw an inflow of ₹854 crore, which was three times more than gold ETFs. This shows that more investors are putting their money into silver.
4. Silver is Outperforming Gold
Experts have noticed that silver has done better than gold, especially in June and July. Manav Modi, a senior analyst from Motilal Oswal, said that silver has been among the top-performing commodities. It recently reached an all-time high in India and is close to $40 per ounce on COMEX, which is a global trading platform for commodities.
What Do the Experts Say?
Manav Modi of Motilal Oswal Financial Services pointed out that silver is showing its strength both in India and globally. It is seen as a safe-haven asset (like gold) and a key industrial metal, making it very attractive right now.
Nirpendra Yadav of Bonanza explained that silver’s rise is connected to a combination of factors: high industrial demand, underinvestment in mining, and strong investor interest. All these are pushing prices higher.
What’s Happening Globally?
Across the world, spot silver prices rose by 0.6% to $38.59 an ounce, showing that silver is doing well everywhere — not just in India. The rise in global prices is also connected to the low silver production, which cannot keep up with demand from industries and investors.
What Does This Mean for the Future?
Analysts believe that silver may continue to rise in value. Since demand is strong and supply is not growing fast enough, prices may keep going up. This is especially true as the world moves towards clean energy technologies like solar power, where silver is an essential metal.
If mining doesn’t increase soon, the supply shortage could continue, giving silver more room to grow in price. With both industrial and investment demand rising, silver could stay in the spotlight for a long time.
Conclusion
Silver has become one of the most watched commodities in 2025. With record-high prices, strong demand, and a tight supply, silver is shining brighter than ever. Whether you’re an investor or just someone curious about market trends, it’s worth keeping an eye on the white metal as it continues to outshine gold and other assets in the months ahead.