What’s pushing prices higher is a supply problem that has been brewing for a while. Mine output has not kept pace with demand, leading to a steady shortfall. More than 70% of global silver production comes as a by-product of other metals, which limits how quickly supply can respond when demand rises. As a result, inventories are low and exchange stocks remain thin.
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Industrial demand has been the biggest driver of the rally. Silver is seeing wider use in renewable energy, power electronics, data centres and electric vehicle manufacturing. This has shifted the narrative around the metal, with silver increasingly seen as an industrial input rather than just a precious metal that moves alongside gold. That change has helped silver outperform other metals in both global and domestic markets.
In India, spot prices rose earlier in the week, gaining ₹1,000 to reach ₹2.34 lakh per kg, reflecting strong local demand and investor interest.
The surge in silver came alongside a broad rally in precious metals.
Spot gold touched a fresh all-time high of $4,549.71 an ounce, while platinum jumped nearly 10% to a record $2,454.12 an ounce. Palladium led gains, climbing more than 14% to around $1,924 an ounce.
Beyond industrial use, silver is also regaining prominence as a financial asset. Growing investment flows, increased allocations within long-term savings products and the Reserve Bank of India’s move to recognise silver as eligible collateral in liquidity operations have collectively strengthened its monetary standing, adding another layer of support to prices.
(Edited by : Shweta Mungre)
First Published: Dec 27, 2025 10:39 AM IST