Silver rate today in India rose again after a massive decline in the previous session. Globally, Silver price today stabilised after its sharpest one-day fall in more than five years as traders booked profits following a strong year-end rally.
MCX Silver advanced over 4% to ₹2.36 lakh/kg. Contracts for March delivery crossed the ₹2.5 lakh mark for the first time in the previous session, reaching ₹2,54,174 on Monday. However, prices later retreated sharply, crashing ₹28,674 per kg or 10.3% to hit the day’s low of ₹2,25,500.
The metal traded near $73 an ounce on Tuesday after tumbling 9% in the previous session, while gold was largely steady after its biggest drop in two months. The pullback across precious metals came as technical indicators showed prices had risen too fast, with thin liquidity amplifying swings. Platinum and palladium also slipped after double-digit losses.
Spot silver rose about 1% to $73.06 an ounce at 9:12 am in Singapore after hitting a record $84.01, while gold held near $4,343.13.
Silver has delivered one of the most dramatic rallies seen in global commodity markets in 2025, emerging as a clear outperformer among precious metals supported by central-bank buying, ETF inflows and three US Federal Reserve rate cuts. According to a report by Motilal Oswal Financial Services Ltd. (MOSL), this sharp move was not driven by short-term speculation or frothy positioning, but by deep structural shifts unfolding across the global silver market. MOSL is of the view that the rally is structurally driven rather than cyclical in nature.
Key reasons behind silver’s 2025 rally
At the heart of silver price rally is a prolonged physical supply deficit. As per the MOSL report, 2025 marked the fifth consecutive year in which the global silver market remained in deficit, as supply failed to keep pace with combined industrial and investment demand.
Explaining this shift, Navneet Damani, Head of Research – Commodities at MOSL, said, “The silver market in 2025 has moved beyond a conventional bull cycle and entered a structural phase, driven by prolonged physical supply deficits, inventory depletion, and policy-led supply constraints. The widening disconnect between paper pricing and physical availability highlights deeper stress in global price discovery mechanisms.”
Moreover, the brokerage highlighted China’s evolving role in the global silver ecosystem as one of the key reasons behind the rally. As one of the largest refiners and net importers of silver, China witnessed steady drawdowns in physical inventories through 2025, pushing stock levels to decade lows. Adding to market anxiety, proposed export licensing requirements effective January 1, 2026 are expected to tighten control over outbound silver flows, restricting the availability of physical metal in global markets at a time when other major inventory hubs are already under strain.
Silver rally: Next target?
According to MOSL, silver price rally is rooted in real metal scarcity and is not just speculative.
It explained that beyond supply constraints, sustained industrial and investment demand has reinforced silver’s price strength. Its growing use in electronics, renewable energy and other technology-driven sectors has ensured steady industrial offtake, while investors have increasingly viewed silver as a strategic hedge amid macroeconomic uncertainty.
Navneet Damani and Manav Modi, Commodities Analyst at MOSL noted, “Silver’s 2025 rally is being shaped by real metal scarcity rather than speculative positioning. Physical deficits, policy-driven supply restrictions, and concentrated inventories are increasingly dictating prices, signalling a durable shift in how the silver market is priced and traded.”
From an investment perspective, MOSL said it continues to maintain a buy-on-dips approach with a staggered investment strategy. While its initial target of $75 on COMEX has already been achieved, the brokerage reiterated its next target of $77 on COMEX, equivalent to around ₹2,46,000 in the domestic market. Any further revisions to this outlook, the report noted, will depend on how supply dynamics, inventory trends and policy developments evolve over time.
Disclaimer: 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.
