How has the industrial demand for silver impacted its price?

Silver's dual character as both a precious metal and an industrial metal has strengthened investor conviction. Sustained industrial demand, particularly in applications like solar panels, electronics, semiconductors, and electric vehicles, has been a key driver of silver's long-term growth story.

What is the outlook for silver prices in the near future?

Analysts expect silver to remain firm in the near term, supported by global demand and currency-led price strength in India. However, any recovery in the rupee or shift in interest rate expectations could trigger short-term corrections in the market.

Home / Business and Economy / Silver Hits Record High as Global Demand Surges

Silver Hits Record High as Global Demand Surges

Q: What factors are driving the surge in silver prices?

Silver prices have surged due to a combination of global factors, including expectations of monetary easing in major economies, persistent geopolitical tensions, and renewed investor interest in precious metals. Additionally, the weakening rupee has amplified domestic silver prices in India.

29 Sep

•

Summary

Silver futures on MCX reach all-time high of ₹1.43 lakh per kg
Spot silver price rises 1% to $46.47 per ounce in global markets
Weakening rupee amplifies domestic silver prices

Silver Hits Record High as Global Demand Surges

As of September 29, 2025, silver prices have reached unprecedented levels, with silver futures on the Multi Commodity Exchange (MCX) in India climbing over 1.3% to an all-time high of ₹1.43 lakh per kg. This surge closely mirrored the gains seen in global spot silver prices, which rose 1% to $46.47 per ounce.

The rally in silver prices has been driven by a combination of factors. Globally, expectations of monetary easing in major economies, persistent geopolitical tensions, and renewed investor interest in precious metals have all contributed to the upward trend. Silver, which carries both safe-haven and industrial appeal, has outperformed several other asset classes this year.

Domestically, the weakening rupee has further amplified the rise in silver prices. As imported commodities like silver become costlier, it translates into higher local prices. Beyond its haven status, silver is also being buoyed by sustained industrial demand, with applications in solar panels, electronics, semiconductors, and electric vehicles continuing to drive its role in the green energy and technology ecosystem.