Silver rate today soared to $70 for the first time in history on Tuesday, December 23, tracking positive global cues. Escalating US-Venezuela tensions and a decline in the dollar index fuelled the rally in the precious metals. Also, expectations for further US rate cuts aided the sentiment, making them more attractive to investors.
MCX silver surged by 1.7% to its record peak of ₹2,16,596 per kg. Meanwhile, MCX gold February futures jumped 1.1% to its all-time high of ₹1,38,300 per 10 grams.
Meanwhile, Spot Silver hit a new high of $70.0055 in intra-day deals today.
Silver has outperformed gold this year, rallying 140% year-to-date. At the same time, gold prices have risen 76% in the domestic spot market.
According to analysts, this sharp surge in the silver rate this year comes on the back of mining disruptions and limited current silver inventories, which are causing severe supply shortfalls and driving prices higher.
Potential interest rate reduction in the United States and a lower dollar are expected to continue to boost speculator demand for silver, not to mention any geopolitical tensions that would generate keener safe-haven demand for silver, said experts.
What is fuelling the silver price rally?
Silver prices have surged to record highs in international markets, supported by a combination of tight physical supply, strong industrial demand and rising investor interest, according to a note by Tata Mutual Fund.
The note highlighted that inventories in key hubs such as London, China and the US have fallen to multi-year lows, signalling increasing scarcity. At the same time, flows into silver exchange-traded funds have turned supportive, with inflows in late November more than offsetting outflows seen in October. Expectations of a US Federal Reserve rate cut have further underpinned investor sentiment toward the metal.
Industrial demand has remained a major driver of prices, led primarily by the solar sector. Over the past five years, strong industrial and investment demand has been met through a combination of reduced jewellery consumption, higher scrap supply and liquidation by stockholders. However, this dynamic has shifted since May 2025, as investor sentiment turned bullish and buying activity intensified.
Supply pressures have also been exacerbated by policy developments. The US has classified silver as a critical mineral, while China, the world’s second-largest silver miner, has imposed export restrictions requiring licences and limiting shipments to large, state-approved producers. India’s demand has remained strong as well, with imports exceeding 2,600 tonnes during September and October.
“Silver is now up over 100% this year, driven by a shift toward alternative assets and expectations of a fifth consecutive annual supply deficit,” Tata Mutual Fund said. The global silver deficit, currently estimated at over 2,500 tonnes per year, could widen further, adding to upward pressure on prices.
Where is silver headed?
Silver’s sharp rally has kept investors focused on how long the momentum can last as prices remain elevated and volatility risks begin to surface.
Renisha Chainani, Head of Research at Augmont, said silver continues to show positive technical signals on both long-term and short-term charts, but the ongoing rally has entered a mature phase.
She noted that commodities, particularly metals, are cyclical in nature and typically move through clear boom and bust phases, adding that silver is currently in a boom cycle, which implies that a bust phase will eventually follow, though the timing remains uncertain. She also flagged that the scale of the rally seen on the monthly continuation chart for nearby silver futures suggests the eventual correction could be sharp.
“If silver continues its bullish momentum, the next targets are USD 72, roughly ₹222,000, while strong support lies near USD 64.50, or about ₹200,000,” Chainani said.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.