Silver soars to a record high, Indians rush to cash in!The India Bullion & Jewellers Association (IBJA) estimates that about 100 tonnes of old silver were sold in just one week, a volume that typically takes several months to surface. Under normal circumstances, the domestic market receives only 10–15 tonnes of old silver in an entire month.The sudden spike in supply has been driven by soaring prices, which touched a record Rs 1,78,684 per kilogram on Wednesday, according to IBJA’s retail data. Although prices eased slightly to Rs 1,75,730 on Thursday, they remain nearly 20% higher than recent lows, prompting many families to turn metal into cash.IBJA national secretary Surendra Mehta said profit-taking has played a major role, alongside rising household needs during the festive period. He added that the wedding season and holiday travel have pushed up the need for liquidity, leading many people to sell off their reserves. Most of the inflow comprises scrap silverware and utensil pieces, according to him.“During Diwali and Dhanteras, silver hit Rs 1.78 lakh per kilo, then slipped to Rs 1.49 lakh. Now that prices are rallying again, people are offloading the metal to generate cash,” Mehta told ET.Silver has been a star performer this year , with its price more than doubling from Rs 86,005 per kg in 2024, overshadowing returns from other asset classes. Gold, in contrast, has seen a gain of roughly 60% during the same period. Analysts expect the appetite to book profits to strengthen further if prices continue their climb, with many seeing the Rs 2 lakh-per-kg milestone within reach.Naveent Damani, head of commodities research at Motilal Oswal Financial Services, believes the current uptrend is far from over as the supply gap widens. He forecasts silver to touch Rs 2 lakh per kg in the first quarter of 2026 and Rs 2.4 lakh by the end of next year, adding that dollar-denominated prices could move up to $75 an ounce, ET reported.Behind the price rally is a persistent shortage. Data from the Washington-based Silver Institute shows that global demand has outpaced supply every year since 2020. Most of the white metal is not mined directly but produced as a by-product of gold, lead or zinc mining, which limits the possibility of sudden expansion in output.For 2025, mined silver production has been flat at 813 million ounces. Higher contributions from Mexico and Russia have been offset by reduced output in Peru and Indonesia. Primary silver production in 2025 is expected to increase by only 3 million ounces to 227 million ounces, while total supply, including recycled silver, is projected at 1.022 billion ounces. That falls short of the estimated 1.117 billion ounces of global demand, leaving the silver market in a continued deficit.