Silver Price Today / 7 reasons due to which silver made a record, is this the right time to buy it

Silver prices rose 6% in July to Rs 1,12,735 per kg, which is a lifetime high in India. The 17-year record was also broken in the global market. The 7 major reasons for the rise in prices include falling dollar, industrial demand and weak supply.

Silver Price Today: Silver prices have reached their all-time high in India, while trading at a 17-year peak in global markets. According to Multi Commodity Exchange (MCX) data, silver prices surged over 6% in the first half of July 2025. On June 30, silver was priced at ₹1,06,292 per kilogram, which rose to ₹1,12,735 per kilogram by July 15. Meanwhile, on the international front, COMEX silver futures hit a 17-year high of $39.570 per ounce on July 14. However, on Tuesday, prices were at $38.720 per ounce, down 2% from the recent high. Seven major reasons are attributed to this rally, which are analyzed below.

Overview of Silver Price Surge

July Surge:
In the first half of July, silver prices rose by ₹6,443 per kilogram — from ₹1,06,713 on July 1 to ₹1,12,735 on July 15.

Weekly Performance:
In the past week alone, silver prices jumped over 4%, increasing from ₹1,08,321 on July 7 to ₹1,12,735 on July 15.

Global Market:
On COMEX, silver futures surged 7% in July, reaching a peak of $39.570 per ounce.

Daily Silver Prices in July

Date	Closing Price (₹/kg)
July 15	1,12,735 (during session)
July 14	1,12,936
July 11	1,13,001
July 10	1,09,123
July 9	1,07,265
July 8	1,07,985
July 7	1,08,321
July 4	1,08,429
July 3	1,08,236
July 2	1,07,518
July 1	1,06,713

Source: Multi Commodity Exchange (MCX)

Seven Key Reasons Behind Silver Price Surge

Decline in Gold-Silver Ratio
The gold-silver ratio has dropped 20% over the past month — from 107 on April 22 to 86.20 now. This decline made silver more attractive than gold to investors.
Weakness in Dollar Index
The dollar index has fallen by 10% in 2025 so far, including a 2.27% drop over the past three months. A weaker dollar tends to boost demand for precious metals like silver.
Reduced Geo-Political Tensions
Geopolitical tensions have eased in recent months. Additionally, uncertainty surrounding Trump-era tariffs has been absorbed by the market, bringing stability to the bullion sector, benefitting both gold and silver.
Increased ETF Investment
Investments in silver exchange-traded funds (ETFs) have seen significant growth. From June 2024 to May 2025, silver ETF AUM rose from ₹7,473.34 crore to ₹16,866.20 crore — a jump of 125.68%. By May 2025, over 8.37 lakh silver ETF investor folios were recorded.
Supply Deficit
The silver market has been in a supply deficit for the fifth consecutive year. Limited new supply from mining and refining has contributed to the price rise. Experts predict the deficit could worsen in the near future.
Surging Solar and Industrial Demand
Demand for silver in solar panel production has surged. In 2025, industrial demand for silver is expected to hit a record 700 million ounces. Growing green energy needs and resolution of tariff issues with China have further fueled industrial demand.
Technical Breakout
In the domestic market, silver decisively breached the ₹1,10,000 resistance level, gaining over ₹4,000 in just three sessions. However, caution is advised following the Federal Reserve's decision not to cut interest rates in July, with only limited easing expected in September.

17-Year Record in Global Market

COMEX silver futures set a 17-year record at $39.570 per ounce on July 14. Despite a 7% gain in July, prices dropped to $38.720 per ounce on Tuesday — a 2% fall in 24 hours, signaling volatility and calling for investor caution.

Future Outlook

According to Kedia Advisory Director Ajay Kedia, the silver price rally is likely to continue. Factors such as potential interest rate cuts by the Federal Reserve, weakness in the dollar index, supply deficits, and rising industrial demand are key drivers. Kedia estimates silver prices could reach between ₹1.25 lakh and ₹1.30 lakh per kilogram by the end of 2025.