Silver prices surged to a historic $70 per ounce on Tuesday, sending India’s MCX silver to a record ₹2,16,596 per kilogram. The rally is catching the eye of many retail investors.
Why Silver Is Shooting Up
Several factors are driving the sharp rise:
- Supply shortages: Mining disruptions and low inventory levels in major hubs like London, China and the US have tightened physical supply.
- Strong industrial demand: The solar industry and other manufacturers continue to buy large amounts of silver.
- Weaker dollar and rate‑cut hopes: A softer US dollar and expectations of further Federal Reserve rate cuts make silver more attractive to investors.
- Geopolitical tension: Growing US‑Venezuela friction adds a safe‑haven appeal to the metal.
How Silver Has Performed This Year
Silver has outpaced gold, climbing about 140% year‑to‑date compared with gold’s roughly 76% gain in the domestic spot market.
Supply‑Side Pressures
Governments are also tightening the market:
- The United States now classifies silver as a critical mineral.
- China, the world’s second‑largest silver producer, requires licences for exports and limits shipments to large, state‑approved firms.
- India’s imports remained robust, exceeding 2,600 tonnes in September‑October.
Analysts estimate a global deficit of more than 2,500 tonnes per year, which could widen further.
What Experts Expect Next
Technical analysts see the rally entering a mature phase. While the price still shows bullish momentum, a correction could follow.
- Potential upside: Targets around USD 72 (≈ ₹2,22,000 per kg) are on the radar.
- Support level: Around USD 64.50 (≈ ₹2,00,000 per kg) could act as a floor.
Takeaway for Investors
The combination of tight supply, solid industrial use and a softer dollar is likely to keep silver attractive for the near term. However, remember that commodities move in cycles, and a sharp pull‑back could come later.
Remember, this is perspective, not a prediction. Do your own research and consider consulting a certified financial adviser before making any investment decisions.