SATURATION POINT

Silver has had a great run, but fresh investments might not be advisable

- BY NACHIKET KELKAR

In 2025, precious metals massively outperformed equities. While gold gained more than 75 per cent, it was silver that outshined everything else, surging more than 170 per cent, and the rally has continued unabated in 2026. Continued geopolitical tensions and trade-related uncertainties, fuelled by the US administration’s levy of steep tariffs on imports from many countries, led to strong investor demand for precious metals. However, silver's performance was boosted by dual tailwinds. First, the rising investment appetite amid global uncertainties, and second, industrial use cases driving demand.

These factors drove silver prices from around $29 an ounce at the start of 2025 to more than $80 at the end of the year. On January 12, 2026, silver hit a new all-time high of $84.50. In the domestic market, it went up to ₹2.63 lakh per kilo before retreating to around ₹2.62 lakh. At the start of 2025, it was priced at ₹93,500. Demand for silver has been rising over the past few years as it is used in solar panels, electric vehicles, semiconductors and data centres, among other areas. However, silver supply has not kept pace with this increasing demand.