Silver prices surge past Rs 1 lakh per kg

For the second consecutive day, silver traded above ₹1 lakh per kg, reaching ₹1,01,323 on Tuesday, up ₹1,241 from Monday. Experts warn festive demand may drop 15-20% while rising EV and solar demand continue to fuel prices. MCX futures hit record highs, with Comex silver exceeding the US $ 34 per ounce.

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Silver prices surged past the Rs 1 lakh mark for the second consecutive day, with the physical market recording a rate of Rs 1,01,323 per kg on Tuesday. Compared to Monday, prices climbed by Rs 1,241 per kg, according to a recent report by ET Retail.

“This price rise will impact the demand for silver during the Dhanteras-Diwali period, and volume-wise it may drop by 15-20%,” said Surendra Mehta, National Secretary of the India Bullion & Jewellery Association (IBJA). He further mentioned that silver had long been undervalued but is now experiencing a bull run. “Also, there’s speculation that Russia is accumulating silver, which is driving prices up,” he added.

Gold prices are rising worldwide as tensions escalate in West Asia and uncertainty looms over the upcoming U.S. elections. These geopolitical issues have prompted investors to flock to safe-haven assets like gold and silver, especially given the Federal Reserve’s cautious stance. Notably, silver has seen a remarkable 48% increase in demand this year, outpacing all industrial metals and energy commodities. This trend highlights silver’s growing appeal as a dependable investment amid market volatility.

Silver futures on the Multi Commodity Exchange (MCX) also hit record highs, with the December 5 expiry contract reaching Rs 98,598 per kg and the March 5, 2025 expiry touching Rs 1,00,564 per kg.

On MCX, silver rose to Rs 98,000, driven by Comex silver crossing US $ 34 per ounce. The breach of this key level triggered fresh buying interest, with market participants expecting further gains. In the short term, silver faces resistance at Rs 100,000 on MCX, a critical psychological barrier, with support levels seen around Rs 96,000 to Rs 96,500.