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Silver Soars: Hindustan Zinc Surges on Record Highs
12 Jan
Summary
- Silver prices hit fresh record highs, boosting Hindustan Zinc shares.
- Silver now contributes significantly to Hindustan Zinc's earnings.
- Geopolitical tensions and a weaker US dollar are driving silver's rally.
Hindustan Zinc's share price has experienced a significant uptrend, marking its second consecutive session of gains on January 12, 2026. This surge is largely attributed to silver prices reaching unprecedented record highs, driven by escalating geopolitical tensions and a notable decline in the US dollar. Silver futures on MCX saw a substantial jump, reaching ₹2,65,390 per kilogram, contributing to a 12.5% increase in early 2026 trading.
The increasing importance of silver to Hindustan Zinc's financial performance is evident, with its contribution to earnings before interest and taxes rising from 28% in FY23 to 41% in H1FY26. The metal's value has skyrocketed, with an 18% surge in spot prices globally in January 2026 alone, following a massive 148% rally in 2025 that significantly outpaced gold. This performance is linked to a short squeeze in October 2025, fueled by US tariff fears and robust investment demand.
Industry analysts, like Motilal Oswal, predict a continued rally for silver in 2026, setting ambitious price targets for both domestic and international markets. However, the latter half of the year's trajectory will hinge on global economic indicators, bond market stability, and monetary policy credibility. The current market environment is also influenced by heightened tensions in Iran and an investigation into US Federal Reserve Chair Jerome Powell, contributing to dollar weakness and making dollar-priced commodities more attractive.
