It appears there is no stopping the rally in silver prices at this point, with the metal racing ahead and ending each session at a fresh record high. Its dual role as both a precious and an industrial metal has given silver a slight edge over gold, causing its prices to shine brighter.
After rallying ₹22,153 per kilogram in Monday’s session, the silver March delivery futures contracts strengthened further in Tuesday’s trade, January 20, spiking another ₹₹3,27,9″>17,723 to register a historic peak of ₹3,27,998, and taking the month-to-date returns to 36%.
Global trade and geopolitical tensions boost safe-haven demand
The resurfacing of global trade tensions is boosting the demand for both gold and silver, coupled with heightening geopolitical tensions in the European region, which is forcing investors to diversify their investments away from risky assets.
Recent media reports suggest that Denmark is increasing its military presence in Greenland as US President Donald Trump refused to rule out using force to secure control of the island.
This follows Trump’s threat to impose an additional 10% import tariff on eight European countries starting February 1, rising to 25% in June unless a deal is reached to acquire Greenland. The tariffs will apply to Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland.
The move drew quick rebukes from European leaders, who are now poised to halt the approval of the trade agreement struck last year. Bloomberg reported that French President Emmanuel Macron may request the activation of the EU’s anti‑coercion instrument, the bloc’s most powerful trade retaliation tool.
This revived tariff-related concerns for global markets, which had reached new heights in 2025, largely driven by optimism about artificial intelligence.
Since the start of the year, Trump has reopened his tariff playbook. Earlier this month, he warned of 25% tariffs on countries doing business with Iran and also proposed a massive 500% tariff on countries importing crude from Russia.
Industrial demand keeps silver in structural deficit
In addition to trade and geopolitical tensions, the rising usage of silver in different industries, including solar and electric vehicles, has caused it to remain in structural deficit for five consecutive years, as per the Motilal Oswal report.
The brokerage said, “Industrial demand is the second highest on record in 2025, driven by solar photovoltaic installations, electrification, electric vehicles, and grid infrastructure investments.”
The surge in demand is exceeding what miners can produce, resulting in existing above-ground stockpiles being drained to meet demand. As those reserves shrink, holders of physical silver are demanding increasingly higher prices to part with it.
Silver prices surge from ₹2 lakh to ₹3 lakh in just 25 sessions
Driven by strong investment inflows and rising industrial demand, silver prices gained ₹1 lakh in a record-breaking time.
Silver rate crossed the ₹1 lakh mark on the MCX in October 2024 and took 14 months to reach the next milestone of ₹2 lakh on December 12, 2025. However, the next ₹1 lakh jump came much faster, with ₹3 lakh in just 25 trading sessions”>silver hitting ₹3 lakh in just 25 trading sessions during Monday’s session (January 19).
Looking ahead, analysts expect the rally to sustain, with prices potentially reaching ₹3.50 lakh.
Ponmudi R, CEO of Enrich Money, said, “Sustained trade above ₹3,10,000 keeps the momentum extremely bullish. The next major upside targets are placed at ₹3,20,000– ₹3,25,000 in the near term, with scope to extend toward ₹3,35,000– ₹3,50,000 over the next few months. Any dip toward ₹3,05,000– ₹3,08,000 should be viewed as a strong buying opportunity.”
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
