Why are Hindustan Zinc shares rising?

Hindustan Zinc shares are rising due to the surge in silver prices to record highs, which boosts the company's earnings potential.

What is driving the silver price rally?

The silver rally is driven by renewed geopolitical tensions and a weakening US dollar, alongside strong investment demand.

What are the predictions for silver prices in 2026?

Analysts predict silver prices to continue their upward trend in 2026, with specific price targets set for domestic and international markets.

Home / Business and Economy / Silver Soars: Hindustan Zinc Surges on Record Highs

Silver Soars: Hindustan Zinc Surges on Record Highs

12 Jan

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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.

Silver Soars: Hindustan Zinc Surges on Record Highs

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.