Silver prices breach ₹2-lakh milestone as 2025 rally soars to nearly 130%

Axis Securities maintains a constructive outlook on silver, citing multiple tailwinds that continue to sustain the rally even as valuations stretch

Silver future prices in India crossed the historical ₹2 lakh-per-kg milestone on Friday, extending the rally that has seen the metal soar nearly 130 per cent this year. 

 

The future contracts of silver rose as much as ₹2,00,362 per kg during the session, according to MCX data, but pared gains to trade 0.6 per cent higher at ₹2,00,143 as of 2:55 PM. So far this year, the metal has risen by 129 per cent, while the gold has surged 75 per cent. 

 

This year has been a remarkable year for silver with prices rising, primarily driven by demand-supply imbalance and safe haven appeal, among other factors, analysts said. 

 

 

According to Axis Securities, many of the performance drivers for silver mirror those supporting gold, including a weaker US dollar, uncertainty around the US Federal Reserve's policy path, geopolitical tensions, global economic fragility and volatility in the Japanese bond market. 

 

The white metal has also drawn support from elevated copper prices, reflecting an industrial demand crossover, while gains in gold have provided additional tailwinds, analysts said.

 

Axis Securities notes that silver supply remains inelastic despite rising prices, as most mined silver is produced as a by-product of lead, zinc and copper mining, limiting the ability of producers to scale output quickly.

 

Overall, the brokerage maintains a constructive outlook on silver, citing multiple tailwinds that continue to sustain the rally even as valuations stretch. However, it cautions that 2026 may bring corrections and heightened volatility as investors reassess valuations. "2025 has cemented silver’s position both as a precious and industrial metal of choice, positioning the white metal as

a standout asset in diversified portfolios," Axis Securities said.  

 

Meanwhile, gold futures on MCX were also trading higher. The bullion was up 1.05 per cent at ₹1,33,860 per 10 grams. Analysts attribute gold's rally this year to being supported broadly by lower opportunity cost of holding gold, safe haven appeal and robust demand. The rally also comes after rate cuts by the US Federal Reserve, as it reduces the opportunity cost of holding the non-yielding asset.

 

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