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Today, on January 19, the price of silver has reached Rs 3 lakh per kg on MCX. There has been an increase of more than Rs 14 thousand. On Friday, silver was close to Rs 2.87 lakh.
On MCX, around December 15, 2025, silver reached Rs 2 lakh for the first time. That means it took only 1 month for silver to reach Rs 2 lakh to Rs 3 lakh. Whereas it took 9 months to reach from 1 to 2 lakh, while it took 14 years to reach from 50 thousand to 1 lakh.
However, in the bullion market today silver has increased by about Rs 12 thousand to Rs 2.94 lakh per kg. In such a situation, the question in the minds of many people is why are the prices of silver increasing so much? Is this the right time to buy silver? What are the safe ways to invest in silver?
You will know the answers to these questions in this story…
Question 1: What are the reasons for the rise in silver prices?
Industrial Demand: Silver is not limited to just jewellery. Silver is being used extensively in solar panels, electric vehicles (EV) and 5G technology. Due to increasing focus on ‘green energy’ all over the world, its consumption is at record levels.
Shortage in supply: The pace at which the demand for silver is increasing, its production from mines is not increasing. Environmental regulations have reduced planned mining in some countries.
Apart from this, about 70% of other metals like silver, copper and zinc are released as by-products during mining. Unless copper mining increases, the supply of silver cannot increase. Due to this huge gap between demand and supply, there is a shortage of silver.
Safe Investment: Due to ongoing geopolitical tensions and inflation across the world, many investors are investing money in gold and silver instead of the stock market.
Whereas in the international market, silver prices are fixed in dollars, so when the dollar index weakens, the prices of silver rise. Currently the Dollar Index (DXY) has fallen from a high of 109 to around 98.
Question 2: Is it right to invest in silver at this time?
- Motilal Oswal Financial Services: Silver can reach ₹3.20 lakh per kg in 2026. Considering the solar and EV demand, it is advisable to buy on every dip.
- SAMCO Securities: Based on technical breakout and strong global cues, silver prices can also touch the level of ₹3.94 lakh per kg.
- Nilesh Surana (Commodity Expert): Silver may go up to $100 per ounce (about ₹3.5-4 lakh) due to increasing demand for green energy and cut in US interest rates.
- Ponmudi R (CEO, Enrich Money): The long-term bullish trend in silver will continue for now, so investors should take advantage of every small drop in prices.
- Robert Kiyosaki (Global Investor): Given the weakness of the dollar and inflation, silver can reach a shocking level of $200 per ounce in the year 2026.
Question 3: How can one invest in silver?
answer: There are 3 popular ways to invest in silver…
Physical Silver: This is the most direct method. You can go to the market and buy silver coins or bars. There is a concern about theft or purity, hence only BIS hallmarked silver should be bought. It can be purchased from well-known jewellers, banks and online platforms.
Silver ETF: This is based on silver prices. In this the money increases and decreases according to the price of silver. These are traded like shares on the stock exchange. To buy it, it is necessary to have a demat account. No need to worry about theft or purity.
Silver Futures: This is a method of trading where you enter into a contract to buy or sell silver at a specified price at a future date.
This happens on MCX (Commodity Exchange). In this, you can buy or sell higher value silver with margin by investing less money, but the risk is higher.
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