Silver crosses all-time high of Rs 2.5 lakh per kilo. Should you buy?

Silver has seen an impressive run in 2025. Today’s silver price crossed Rs 2.5 lakh per kilo for the first time. This came as silver hit an all-time high of $83.62 (Rs 7,520) per ounce on the international market before giving up some of its gains on Monday.

Today’s movement has seen silver lose Rs 11,000. Last week, it crossed the $77 (Rs 6,923.84) per ounce mark for the first time. But is silver worth investing in 2026?

Let’s take a closer look:

How silver fared this year

The precious metal has outperformed all asset classes this year when it comes to returns. The precious metal is up 170 per cent, or around Rs 1,50,000 per kilo, since the beginning of 2025. Gold, meanwhile, is up around 80 per cent since the start of this year.

The last week has seen silver rise by 15 per cent alone. This is due to expectations of a US Federal Reserve rate cut and geopolitical tensions that fuelled safe-haven demand. Supply deficits, its designation as a US critical mineral, and strong investment inflows have also fuelled the rise of silver.

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"Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Why silver could outperform in 2026

All eyes are on silver to see whether it will breach the psychologically important $100 (Rs 8,992) per ounce benchmark. The demand for silver from electric vehicles (EVs), solar, semiconductors, and data centres will determine how silver fares in 2026.

According to the Silver Institute, the precious metal’s demand has exceeded supply for four straight years as of 2024. In 2024, silver had a structural market deficit of 148.9 million ounces, as per data from the Silver Institute.

“Silver has been in a multi-year supply deficit — global mine output has lagged demand, and above-ground inventories are declining. Structural tightness in the physical market could support much higher prices if deficits deepen,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, told Mint.

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Analysts say China’s decision to impose export restrictions on silver from January 1, 2026, could impact global supply chains.

Tesla CEO Elon Musk has commented on the soaring price of silver, saying the situation is “not good.”

“Silver is needed in many industrial processes,” Musk wrote on X. He said China’s plans to begin restricting silver exports in early 2026 were “a bigger deal than it may seem.”

“Silver prices are exploding due to a severe global supply shortage,” analysts with researcher Bull Theory wrote on X.

“The physical market can no longer meet soaring demand. Silver is not rallying because of fear. It is rallying because a real supply squeeze is playing out in real time."

Markets are anticipating two rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could name a dovish Fed chair, reinforcing expectations for a more accommodative monetary stance.

Trump is currently looking to replace Federal Reserve chief Jerome Powell.

Kevin Hassett, the director of Trump’s National Economic Council, and former Fed governor Kevin Warsh are likely the frontrunners for the job.

Both are likely to cut interest rates, which has long been an obsession of Trump.

Should you invest in silver?

Yes.

Experts believe that silver has a good chance of hitting the $100 (Rs 8,992) per ounce benchmark in 2026.

“Silver has delivered an exceptional performance in 2025, returning to the forefront of global investor attention. As markets look ahead to 2026, the long-discussed $100 (Rs 8,992) per ounce level is no longer viewed as a purely speculative projection,” Ravinder Sharma, Senior Commodity Research Analyst at SMC Global Securities, told Mint.

“The prevailing consensus for 2026 currently places silver in the range of $70 to $85 (Rs 6,294 to Rs 7,643) per ounce. However, silver’s high-beta characteristics mean that once major resistance levels are breached, price movements tend to accelerate more rapidly than those of gold,” Sharma added.

“The 2025 rally in precious metals marks the beginning of a deep, structural shift in the international monetary system, from a US-centric framework towards a more multipolar order,” Ramnivas Mundada, director of economic research and companies at GlobalData, told Forbes.

Mundada said gold and silver would add another 8 per cent to 15 per cent and 20 per cent to 35 per cent respectively in 2026.

Elsewhere, spot platinum rose 9.8 per cent to $2,437.72 (Rs 2.19 lakh) per ounce, having earlier hit a record high of $2,454.12 (Rs 2.20 lakh), while palladium surged 14 per cent to $1,927.81 (Rs 1.73 lakh), its highest level in more than three years.

All precious metals logged weekly gains, with platinum recording its strongest weekly rise on record.

With inputs from agencies