Image Source: Economies.com
Silver prices have skyrocketed to record levels in India, reaching a new all-time high driven by strong industrial demand and rising geopolitical tensions. On June 8, 2025, silver was trading at ₹1,07,000 per kilogram in major Indian markets, with some areas even seeing prices exceed ₹1,10,000 per kilogram. This represents an impressive 22% increase since the beginning of the year, closely following gold's 27% rise during the same timeframe.
Key Highlights
Historic Highs: As of June 6, 2025, silver prices on the Multi Commodity Exchange (MCX) hit ₹1,06,000 per kg and continued to climb to ₹1,07,000 per kg by June 8, setting new records in the Indian bullion market.
Drivers of the Rally: Industrial Demand: The surge is largely driven by booming industrial demand, especially from sectors like solar energy and electric vehicles. The Silver Institute predicts a 3% increase in industrial fabrication, exceeding 700 million ounces for the first time.
Supply Constraints: 2025 marks the fifth consecutive year of a global supply-demand deficit, putting additional upward pressure on prices.
Geopolitical Tensions: Ongoing conflicts, particularly the Russia-Ukraine war and recent military escalations, have led investors to seek safe-haven assets like silver and gold.
Investment Demand: There’s a strong appetite among investors, with increased participation in silver futures and physical markets as a hedge against inflation and global uncertainty.
Market Sentiment: Technical analysts point out that silver has broken through key resistance levels, suggesting further gains are likely if global conditions remain favorable. The bullish trend is expected to continue as long as prices stay above critical support zones.
Comparative Performance: After lagging behind gold, silver is now drawing in investors looking for portfolio diversification, narrowing the performance gap between the two metals.
Outlook
With both industrial and investment demand on the rise, and geopolitical risks showing no signs of easing, analysts expect silver to maintain its momentum in the near future. The market remains firmly bullish, with potential for further gains if global uncertainties persist.
Source: KKN Live, CNBC TV18, Economic Times, Goodreturns, MP Breaking News
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