Silver Cross Rs 2.06 Lakh In MCX, Rs 2.50 Lakh Projected For 2026
Investment demand remains robust as silver-backed ETFs continue to attract buying interest, with global holdings on pace for a sixth consecutive week of inflows.
Chennai: Silver prices crossed Rs 2,06,000 per kg at the Multi Commodity Exchange as international silver touched a new high of $66 per ounce. Having risen 130 per cent in 2025, silver carries the potential to move 20-25 per cent more in the coming months.
On Wednesday, silver extended its remarkable rally, breaking above the $66 per ounce level for the first time on record, driven by a combination of tight physical supply conditions, rising safe-haven demand, strong inflows into silver-backed ETFs, and growing expectations of US Federal Reserve rate cuts, finds Kotak Securities.
This saw silver touching Rs 2,06,111 per kg in the Multi Commodity Exchange.
Investment demand remains robust as silver-backed ETFs continue to attract buying interest, with global holdings on pace for a sixth consecutive week of inflows. Momentum has been further amplified by reports that China plans to restrict silver exports from 2026, a development that could disrupt a key supply source and intensify pressure on the global market, said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.
With Chinese silver inventories already at their lowest levels in a decade, any export curbs risk worsening the physical squeeze, reinforcing the bullish narrative and potentially sustaining elevated prices in the near term.
Silver delivered an exceptional rally in 2025, with prices rising nearly 130 per cent, reaffirming its reputation for sharp, momentum-driven moves. “Looking ahead to 2026, the outlook remains positive but far more volatile than gold. The metal carries further upside potential of 20–25 per cent, with MCX prices seen in the Rs 2,45,000– Rs 2,50,000 range and international prices around $72.5–74 per ounce,” said Ajay Kedia, MD, Kedia Commodities.
However, history suggests caution, as silver has a tendency to correct swiftly after steep rallies, as witnessed in 1980 and 2011. Corrections of 28–30 per cent cannot be ruled out, particularly if ETF-driven investment demand weakens amid better opportunities elsewhere, he said. Structurally, this cycle is supported by robust industrial demand from clean energy, solar, data centres, and electrification. Silver’s growing role as a “digital-age metal” strengthens its long-term case, with $100 remaining a realistic long-term target if supply constraints persist.
