Silver Price Today: Silver Shatters 46-Year Record, Eyes ₹2.5 Lakh Mark by 2026

Silver prices have witnessed an unprecedented surge this year, capturing the attention of investors and market analysts alike. The precious metal has seen a remarkable 120% increase so far this year, pushing. Its domestic market price past the ₹200,000 mark for the first time on Friday. This rally is particularly significant as it has broken a 46-year-old record, marking the first time since 1979 that silver prices have seen such a dramatic rise. However, this golden gleam of silver isn't expected to end soon, while analysts estimate that its price will reach a target of ₹240,000-250,000 by next year, representing another 25% increase, primarily due to genuine supply-side constraints and escalating demand.

Historic Surge in Silver Prices

Silver's performance this year has been nothing short of spectacular, making it one of the best-performing commodities, while the 120% jump has not only enriched investors but also generated new excitement in the market. Crossing the ₹200,000 threshold is a significant milestone, underscoring silver's growing popularity and its intrinsic value. This historic surge, unseen since 1979, highlights the extraordinary nature of the current rally. It suggests a evolving perception of silver in the market, where it's viewed not just as a precious metal but also as a crucial industrial component.

Driving Factors Behind the Rally

Harshal Dasani, Business Head at INVAsset PMS, stated in a Mint report that the escalating silver prices indicate a structural revaluation in the market, driven by physical scarcity and increasing demand. Global mining production has not kept pace with the higher prices, remaining stagnant at approximately 810 million ounces, which is roughly equivalent to or even less than levels seen five years ago. It's crucial to note that about 70-80% of silver is obtained as a byproduct of lead, zinc, and copper, making direct increases in its supply challenging. According to Refinitiv data, the silver supply deficit is expected to persist until 2026, estimated at around 112 million ounces. Brokerage firms believe that industrial demand remains the primary foundation for this bullish forecast.

Industrial Demand: The Core Catalyst

According to the firm, industrial demand has surged, particularly due to the push for green energy, while the Solar Photovoltaic (PV) sector has fundamentally altered the demand landscape for silver. Demand for silver from the solar energy sector has doubled in the past four years, rising from 94, while 4 million ounces in 2020 to 243. 7 million ounces in 2024, while solar energy alone accounted for approximately 21% of the total demand in 2024. This illustrates how the global shift towards renewable energy sources is profoundly impacting silver demand. Also, the market is currently grappling with logistical imbalances stemming from trade policy uncertainties.

Logistical Imbalances and Market Dynamics

Throughout the year, COMEX futures have consistently traded at a premium compared to London's spot price. This arbitrage opportunity has aggressively drawn metal out of London, the world's main liquidity center, and channeled it into US reserves, effectively reducing the global float. This situation creates tension in the supply chain and pushes prices upwards. Axis Direct reported that silver inventories in COMEX are increasing, reflecting this transfer, while these market dynamics further bolster the current upward trend in silver prices, as they exert pressure on physical availability.

International Market Trends and Technical Outlook

On technical charts, silver has decisively broken out of a decade-long bottom. This is widely interpreted as a strong bullish signal. The brokerage firm believes that consistent monthly closings above $67 could trigger a multi-year uptrend with targets of $76-80. However, the firm also suggests that consolidation near the $65 resistance level might occur, but the overall long-term outlook remains bullish. This technical analysis, combined with the prevailing fundamental factors, paints a strong future picture for silver.

Domestic Market Strategy and Future Projections

Axis Direct suggests that in the domestic market, if silver prices fall into the ₹170,000-178,000 range, it could be utilized for phased buying of silver, targeting approximately ₹240,000 for 2026. On the other hand, Dasani reiterated that the future outlook for silver remains strong. Driven by physical scarcity, strong industrial demand, and renewed investment interest, Dasani stated that the metal isn't only experiencing a price increase but also a revaluation. This revaluation is expected to sustain the rally through 2026, potentially pushing prices to ₹2. 5 lakh. This forecast provides a significant indicator for investors that substantial potential still lies within the silver market.