Silver tops Rs 3 lakh per kg: Buy or hold?

Silver crossed a historic Rs 3 lakh per kg on MCX, fueled by geopolitical tensions, safe-haven demand, and strong industrial usage. While experts caution against chasing prices, the long-term outlook remains positive amid supply constraints and macro uncertainty.

Silver scaled an all-time high on January 19, breaching the Rs 3 lakh-per-kg mark on the Multi-Commodity Exchange (MCX), as intensifying geopolitical tensions and resilient industrial demand pushed investors toward safe-haven assets.

The metal surged to a record Rs 3,04,087 per kg at around 12:29 pm IST, rising 5.67% in a single session. Silver prices are now up nearly 206% year-on-year. The previous peak of Rs 2,92,960 per kg was recorded just four days earlier, on January 15, underscoring the speed and intensity of the rally.

The latest leg of the surge followed renewed geopolitical concerns after US President Donald Trump warned of additional tariffs of up to 25% on European nations if negotiations linked to Greenland-related tensions fail by June. The rhetoric unsettled global markets, prompting a flight to traditional safe-haven assets such as gold and silver.

Globally, spot silver touched a record $94.36 per ounce on Comex before easing slightly to around $93.18, still up over 5% from the previous close. Regional price disparities have also widened, with Shanghai silver trading nearly $10 per ounce above London benchmarks, highlighting strong Asian demand.

Although some physical tightness is easing as silver flows back from Comex warehouses to Europe, prices remain elevated. High valuations could marginally temper industrial demand, but speculative interest—particularly from China—continues to provide strong support.

Beyond safe-haven buying, silver’s rally is being reinforced by robust industrial demand from clean energy, electronics, and electric vehicle manufacturing. Investment inflows have further amplified price swings, increasing near-term volatility.

Silver’s uptrend began around $45 per ounce in October 2025 and accelerated sharply, touching $82.7 by December before extending gains in early 2026. Analysts believe the move reflects a broader structural shift rather than a short-lived spike.

“Silver crossing the Rs 3 lakh per kg mark is a historic milestone, reflecting intensifying safe-haven demand amid geopolitical tensions and global macro uncertainty,” said Justin Khoo, Senior Market Analyst – APAC at VT Market. “This breakout is part of a broader structural uptrend supported by supply constraints and strong industrial demand, especially from solar, electronics, and EV sectors.”

Khoo advises caution at record levels. “Short-term traders should consider tactical profit-taking near these highs. For long-term investors, silver remains an effective hedge against inflation and market uncertainty,” he said, adding that buying on meaningful dips with disciplined risk management remains the preferred strategy.

Going ahead, markets will track key US macro cues, including PCE inflation data and final Q3 GDP numbers, for direction. Despite near-term volatility, analysts say the global macro and geopolitical backdrop continues to favour silver bulls.

An Augmont report notes that silver is witnessing heavy speculative activity from both buyers and sellers, leading to sharp price swings. While volatility may persist, the longer-term outlook for the white metal remains constructive.