Silver Reaches Unprecedented Heights

Breaking free from the shadow of gold, silver prices soared to a record Rs 1,13,000 per kg on MCX late Friday. This surge mirrors the international market's 13-year peak, with spot prices hitting $37.8/Oz and futures at $38.7, fueled by escalating trade tensions following recent tariff announcements by US President Donald Trump.

Global Trade Tensions Fuel Demand

"The rally in silver prices is significantly influenced by the positive momentum from international markets, where trade tensions have heightened the appeal of safe-haven assets," explained Saumil Gandhi, a senior commodities analyst at HDFC Securities.

Industrial Demand and Supply Deficits

With industrial demand for silver projected to exceed 700 million ounces, the market faces its fifth consecutive year of deficit. "The green economy's expansion is a key driver behind this unprecedented demand," Gandhi added.

Avinash Gupta of the All India Gem & Jewellery Domestic Council noted, "The resolution of tariff disputes between the US and China is further stimulating industrial demand, pushing prices even higher."

Future Projections

Surendra Mehta, national secretary of the India Bullion and Jewellers Association, anticipates prices could reach $42 internationally and Rs 1.22-1.23 lakh domestically within the next few months, attributing this to a shift from paper to physical trade.