Silver prices extended their blistering rally on Friday, climbing above the ₹2.35 lakh per kg level in the domestic market — a fresh all-time high. The white metal has surged by more than ₹32,000 per kg in just four trading sessions, underscoring the strength and momentum behind the ongoing uptrend.
Gold, too, continued its upward march, albeit at a more measured pace. Prices crossed the ₹1.42 lakh per 10 grams mark in local markets, reflecting sustained investor interest in safe-haven assets.
The sharp rise in domestic prices followed record-breaking moves in global markets. Internationally, silver breached the $75 per ounce level for the first time ever, while gold scaled a new peak above $4,550 per ounce. Platinum also joined the rally, hitting a historic high of $2,400 per ounce.
Geopolitical Tensions Boost Safe-Haven Demand
Escalating geopolitical risks have played a key role in lifting precious metal prices. Heightened tensions involving Venezuela — where the US has blockaded oil shipments and intensified pressure on President Nicolás Maduro’s government — have added to haven demand. Additionally, reports of a US-backed military strike against Islamic State targets in Nigeria have further unsettled global markets, encouraging investors to seek refuge in bullion.
Silver Outpaces Gold in 2025
So far this year, silver has significantly outperformed gold. In domestic markets, silver prices have jumped around 160%, compared with an approximate 80% rise in gold. Analysts attribute silver’s sharper gains to a rare convergence of strong investment demand, rising industrial usage, and tight supply conditions.
Investment inflows into silver-backed exchange-traded funds (ETFs) have picked up, adding to traditional demand for physical forms such as utensils, coins, biscuits, and bars. At the same time, industrial consumption has been climbing steadily.
Industrial Demand and Supply Deficit Drive Momentum
Silver’s superior electrical conductivity has made it indispensable for fast-growing sectors such as semiconductors, electric vehicles, and solar energy. These industries are consuming increasing quantities of the metal, amplifying demand at a time when supply growth has failed to keep pace.
According to market experts, silver has been facing a multi-year supply deficit. Global mine production has lagged consumption, while above-ground inventories have been steadily declining. This imbalance has tightened the physical market and amplified price volatility.
Data cited by Bloomberg indicates that silver vaults in London have seen notable inflows since an earlier market squeeze. However, a large portion of readily available silver remains stored in New York, as traders await the outcome of a US Commerce Department review into whether imports of critical minerals pose a national security concern. The probe could potentially lead to tariffs or other trade restrictions on silver.
Physical Shortage Adds Pressure
Market participants say the rally is being intensified by the gap between paper trading and physical availability. “A large number of positions exist on paper, but now they need to be backed by actual metal — and supply is limited,” analysts note. This scramble to secure physical silver has added further fuel to the price surge.
With geopolitical uncertainty, structural supply deficits, and robust industrial demand all aligning, analysts believe volatility in precious metals is likely to remain elevated in the near term.