Silver shines at Rs 3 lakh per kg

Silver crossed the ₹3 lakh per kg mark for the first time on Monday in the backdrop of the Trump administration's sudden move to slap tariffs on some European countries, seen as a geopolitical leverage to pressure them over selling Greenland to the US government.

Supply-side concerns, weakening of the dollar and robust industrial and investment demand propelled demand for the metal, considered a safe haven asset.

Brokerages advised investors to take a staggered approach with some caution towards silver as the precious metal is facing intense volatility.


The view however remains bullish and any dip should be used as an accumulation zone, said Manav Modi, commodity analyst at Motilal Oswal Financial Services.

According to Avinash Gupta, vice-chairman of All India Gem & Jewellery Domestic Council (GJC), high prices have slowed down the physical demand for silver. "Demand is down by 15%-20%," he said. "Rising geopolitical tensions thanks to US President Donald Trump are pushing up prices of both gold and silver every day. If the tensions intensify further, then the price of silver might touch Rs 4.5 lakh per kg within the next six months."

The price of silver is being driven by demand from both industrial and new-age industries. Silver as an avenue for investment and jewellery is also at a growth stage but not as much as seen in the industrial segment, said Suvankar Sen, MD of Senco Gold. "Consumers are looking for smaller gift items in silver at our outlets."

There has been a deficit in silver for the five years till calendar 2025. According to a HDFC Securities report on Precious Metal Outlook, there has been a cumulative deficit of 800 million ounces, nearly equivalent to a full-year's mine supply.