Silver – Prices Stabilise After Record Rally in 2025
Silver – Silver has extended its strong run into 2026, building on last year’s extraordinary gains and drawing sustained interest from investors across India. After a dramatic surge in 2025, the metal has now moved into a phase of relative stability as traders reassess valuations and global cues.
Rally Fueled by Supply Gaps and Industrial Growth
The white metal delivered one of its strongest annual performances in recent memory in 2025, climbing 122 percent, according to data from 1 Finance Research. The surge was largely driven by continued supply shortages for a fifth consecutive year and rising consumption from industries such as solar power and electronics manufacturing.
Demand linked to renewable energy infrastructure and expanding electronics production has kept supply tight, creating a favourable environment for prices. These structural factors pushed silver sharply higher through last year, outperforming several other asset classes.
However, after such a steep ascent, markets often pause. Analysts say the current consolidation reflects investors locking in profits and evaluating whether the fundamentals justify further gains at the same pace.
Current Price Levels Signal Pause, Not Reversal
On February 27, silver was quoted at Rs 267,631, up Rs 8,031 or 3.09 percent for the session. The uptick suggests that while the metal is no longer rising at last year’s breakneck speed, buying interest remains intact.
Gold, traditionally seen as a safer store of value, was trading at Rs 160,375, up Rs 666 or 0.42 percent. Compared to silver’s sharper movements, gold’s trajectory has been steadier, reflecting its different demand profile and broader investor base.
Market participants note that silver tends to exhibit higher volatility than gold because of its dual role as both a precious and industrial metal.
Technical Outlook Remains Constructive
Ponmudi R, Chief Executive Officer of Enrich Money, said international silver prices on COMEX are currently hovering between $85 and $90 after correcting from levels above $121. Despite the pullback, he said the broader upward structure remains intact.
He pointed out that strong buying support has emerged in the $70 to $75 range. A sustained move above $92 to $96 could potentially revive bullish momentum and open the path toward the $100 to $105 band. According to him, industrial demand and persistent supply constraints continue to underpin the medium- to long-term outlook, though short-term fluctuations cannot be ruled out.
On the domestic front, MCX silver futures are trading within the Rs 2,50,000 to Rs 2,60,000 range. Ponmudi noted that key structural support lies between Rs 2,25,000 and Rs 2,35,000. Holding above this zone could set the stage for a move toward Rs 3,00,000 to Rs 3,25,000 over the medium term. A decisive breach below support, however, may lead to increased near-term selling pressure.
Uneven Momentum Across Precious Metals
Research from 1 Finance indicates that the precious metals rally has not been uniform. Gold has largely sustained its gains through multiple support levels, while silver recorded steeper advances because of tightening supply and expanding industrial use.
For 2026, analysts have assigned silver a neutral stance with a risk rating of 3 out of 5. Supportive factors include ongoing multi-year supply deficits, growing demand from solar and electronics sectors, and supply restrictions in China. At the same time, risks stem from the possibility of a stronger US dollar and profit-booking after last year’s exceptional performance.
Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance, said the investment environment in 2026 differs significantly from the previous year. He noted that rate cuts are slowing, geopolitical tensions are recurring rather than isolated, and India’s economy appears to be shifting from slowdown toward recovery.
According to Hardia, investors who align their asset allocation with the evolving macroeconomic phase are likely to fare better. Recognising the broader transition in India’s economic cycle before it becomes widely apparent will be critical for portfolio positioning.
What Investors Should Watch
Silver’s current consolidation phase suggests a market catching its breath after a historic rally. While near-term volatility may continue, the broader outlook remains supported by structural supply constraints and firm industrial demand.
Maintaining levels above key support zones will be essential for renewed upward momentum. Conversely, a sustained decline below these thresholds could trigger additional short-term pressure. As 2026 unfolds, investors are likely to weigh global economic signals, currency movements and domestic recovery trends before making fresh commitments in the silver market.