Silver prices rocket nearly Rs 85,000 in first 20 days of 2026! Should you buy, sell or hold?

Silver has begun 2026 on a blistering note, surging more than 35%—or nearly Rs 85,000--as a mix of supply constraints and heightened geopolitical tensions involving the US, Iran and Greenland has boosted demand for the white metal, prompting investors to pause and reassess their next move.

The rally gathered further momentum this week after MCX silver futures broke past the psychological Rs 3 lakh per kg mark. In today’s session, prices jumped over 2.5%, or nearly Rs 8,000, to Rs 3,19,949 per kg. The latest spike was driven by renewed concerns between the US and the European Union after US President Donald Trump threatened to acquire Greenland and impose punitive tariffs on Europe. Here’s what experts are saying.

“Silver at $94 per troy ounce, a level once considered unthinkable, is driven by a "perfect storm" of industrial scarcity and geopolitical shifts. Looking at Technical charts, we are expecting further upward momentum in Silver and immediate support would be at 20-DEMA level placed at Rs 255,100, says Aamir Makda, Commodity and Currency Analyst at Choice Broking, told ETMarkets.


Although in recent sessions, with a price up move, a bearish RSI divergence has emerged, and it is a classic “Red flag” warning, says Makda. It suggests that while the price is still climbing and hitting new peaks, the internal momentum driving those gains is actually weakening. Along with this, we can see the fall in OI levels to 9850 lots parallel to price-rise so far in the March contract, which suggests a Long unwinding in Silver. Traders who already have long positions should look for a profit-booking at current levels, he added.

Jigar Trivedi, Senior Analyst at Reliance Securities also echoed a similar view, suggesting that some time-based consolidation is on the cards in the near term; however, given the prevailing political and geopolitical backdrop, the current rally could extend toward the psychological level of $100 per ounce, as the broader undertone in the international market remains decisively bullish. That said, the risk–reward equation appears evenly balanced at 1:1, considering the sharp run-up over the past 13–14 months. In rupee terms, Rs 3,30,000 per kg is seen as the next key resistance level, he added.

From an investment perspective, this breakout is not merely a short-term spike but part of a broader structural uptrend supported by supply constraints and robust industrial demand, particularly in solar, electronics, and electric vehicles. While elevated levels introduce heightened volatility, investors should focus on strategic positioning rather than chasing record highs. Tactical profit-taking near these peaks is sensible for short-term traders, but for long-term investors, silver remains a compelling hedge against inflation and market uncertainty, says Justin Khoo, Senior Market Analyst at VT Market.

Overall, the recommendation is to buy on meaningful dips and hold core positions, keeping allocations balanced with risk management in mind, Khoo added. The trend favors continued upside, but disciplined entry and exit remain critical at these historically high levels.

Akshat Garg, Head of Research and Product at Choice Wealth said new investors should consider adding Silver ETFs as part of a diversified multi-asset portfolio to benefit from the metal’s strong structural drivers, while existing investors should avoid exiting at current levels as the underlying support remains intact.

Experts say new investors may look at allocating 5–10% to silver and gold ETFs within a broader multi-asset framework, treating the exposure as diversification rather than a momentum trade, Garg said. Existing holders should stay invested through volatility, as institutional flows, ETF participation, and long-term fundamentals remain supportive, with discipline and conviction likely to matter more than short-term market timing through 2026.

Silver stands out due to its dual role as a monetary hedge and an industrial metal, with over half of its demand now coming from applications such as solar power, electric vehicles, data centres and electrification. Persistent supply deficits, driven by constrained mine output and recycling, point to a tight market structure, positioning silver to potentially outperform gold during growth phases while still offering protection in volatile periods.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)