Silver prices are on a historic run. In just one month, the white metal has added nearly ₹1 lakh per kilogram, scaling fresh lifetime highs on the Multi Commodity Exchange (MCX). The sharp rally is being driven by a powerful combination of strong industrial demand and rising global geopolitical and trade-related uncertainties, prompting investors to seek safety beyond traditional assets.
With silver now trading close to ₹3.28 lakh per kg, market participants are increasingly asking one question — is ₹3.5 lakh the next big target?
Silver Hits Fresh Record High on MCX
Silver futures for March delivery surged to a new all-time high of ₹3,27,998 per kilogram on Tuesday, extending the strong momentum seen earlier in the week. The contract had already jumped ₹22,153 in Monday’s session and added another ₹17,723 on Tuesday, marking one of the fastest rallies in recent history.
So far this month, silver has delivered returns of around 36%, outperforming gold and several other asset classes.
Market experts attribute this strength to silver’s unique positioning — it acts both as a precious metal and a critical industrial input, giving it a distinct advantage during periods of economic uncertainty.
Global Trade Tensions Fuel Safe-Haven Demand
Rising geopolitical stress has played a major role in boosting demand for silver and gold. Concerns resurfaced after reports suggested Denmark is increasing its military presence in Greenland, amid remarks by US President Donald Trump, who refused to rule out the use of force to gain control of the island.
Adding to the uncertainty, Trump has threatened to impose fresh import tariffs on several European nations starting February 1. These tariffs could rise as high as 25% by June if negotiations fail. Countries potentially affected include Denmark, Germany, France, the UK, Sweden, Norway, Finland, and the Netherlands.
European leaders have pushed back strongly, with discussions underway to activate the European Union’s anti-coercion trade measures. This escalation has rattled global markets that were already stretched after a strong rally driven by artificial intelligence optimism in 2025.
As a result, investors are increasingly shifting funds away from riskier assets and toward traditional safe havens, including silver.
Industrial Demand Keeps Silver in Structural Deficit
Beyond geopolitical concerns, silver’s fundamentals remain exceptionally strong. According to a report by Motilal Oswal, silver has been in a structural supply deficit for five consecutive years, largely due to rising industrial consumption.
Silver usage continues to grow across sectors such as:
- Solar photovoltaic installations
- Electric vehicles
- Electrification and grid infrastructure
- Advanced electronics
The brokerage noted that industrial demand in 2025 is the second-highest on record, while mining supply has failed to keep pace. As a result, existing above-ground stockpiles are being steadily depleted.
With physical silver becoming scarcer, holders are demanding higher prices, further supporting the ongoing rally.
From ₹2 Lakh to ₹3 Lakh in Just 25 Sessions
The speed of the current rally has surprised even seasoned market participants.
Silver crossed the ₹1 lakh mark on MCX in October 2024 and took nearly 14 months to reach ₹2 lakh by December 12, 2025. However, the next ₹1 lakh jump came in record time, with silver moving from ₹2 lakh to ₹3 lakh in just 25 trading sessions.
This rapid rise reflects a surge in investment inflows, heightened global uncertainty, and sustained industrial demand.
Is ₹3.5 Lakh the Next Target?
Analysts remain optimistic about silver’s outlook. According to Ponmudi R, CEO of Enrich Money, the broader trend remains decisively bullish as long as prices stay above key support levels.
“Sustained trade above ₹3,10,000 keeps the momentum extremely bullish. Near-term targets lie in the ₹3,20,000–₹3,25,000 range, with the potential to extend toward ₹3,35,000–₹3,50,000 over the next few months,” he said.
Market experts also suggest that any correction toward the ₹3,05,000–₹3,08,000 zone could attract strong buying interest from long-term investors.
Summary: Key Highlights
- Silver prices surged nearly ₹1 lakh in one month, hitting record highs on MCX
- Strong industrial demand and global trade tensions are driving the rally
- Silver remains in a structural supply deficit for the fifth consecutive year
- Prices jumped from ₹2 lakh to ₹3 lakh in just 25 trading sessions
- Analysts see ₹3.5 lakh per kg as the next major upside target
As global uncertainty persists and industrial demand continues to expand, silver’s shine appears far from fading. Whether the metal reaches ₹3.5 lakh sooner than expected will now depend on how long these powerful tailwinds remain in place.