New Delhi, Dec. 27 — Silver has surged through 2025, delivering a year‑to‑date return of 158 %. Prices in India have lifted almost Rs 1,45,000 per kilogram, a jump of roughly 170 % on the domestic spot market.
Industry analysts say the combination of soaring demand from electric‑vehicle batteries, solar panels, semiconductors and data centers, tight supply, strong ETF inflows, and expectations of further U.S. Federal Reserve rate cuts could push the metal toward $100 per ounce.
The market is also buoyed by a multi‑year structural supply shortfall of 148.9 million ounces forecast for 2024. Investors are hopeful for another 0.75 % Fed easing and at least two rate cuts next year. A softer dollar and geopolitical frictions – including the U.S. embargo on Venezuelan crude, ongoing Russia‑Ukraine hostilities, and a U.S. military strike against ISIS in Nigeria – are expected to reinforce demand beyond industrial needs.
Last Friday, MCX silver March futures hit an intraday record of Rs 2,32,741 per kilogram. With the $100 mark now seen as attainable by 2026, most analysts expect silver to trade between $70 and $85 per ounce next year, arguing that the metal’s high‑beta profile could drive further gains once key resistance levels are broken.
In a more cautious note, a recent Axis Mutual Fund briefing warned that overvaluation could trigger ETF outflows and that a downturn in copper could also depress prices. The report acknowledged, “Overall, our outlook for silver is constructive with multiple tailwinds sustaining its rally even as valuations stretch.”
Central banks tend to favor gold over silver, which could cap official demand support, and a shift to alternative industrial materials remains a risk factor.
— IANS
aar/na
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
