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.

Analysts point out that silver's dual character as both a precious metal and an industrial metal has strengthened investor conviction. The Axis Mutual Fund report notes that silver's long-term growth story is anchored in clean energy transitions and manufacturing demand worldwide. Robust inflows into silver-backed exchange products and bullish positions in futures markets have added further momentum to the rally.

Looking ahead, experts 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.