Silver prices hit a record high above ₹3.75 lakh after 6% surge. Is it still worth buying?
Silver prices have broken into uncharted territory in early 2026. Domestic rates on the Multi‑Commodity Exchange (MCX) recently jumped more than 6 % to over ₹3.75 lakh per kilogram, a new all‑time high. Globally, silver has climbed past $100 per ounce, driven by a mix of investment demand, industrial growth, and safe‑haven buying.
Recent Silver Price Surge
- Record High: Silver prices in India jumped to ₹3.59 lakh/kg on Jan 27, 2026, up sharply from previous levels.
- Local Markets: Some reports show prices near ₹3.75 lakh/kg in Hyderabad and Chennai.
- Trend: Prices have climbed from ₹3 lakh/kg earlier in January 2026, continuing a year-long upward trend.
- Global Context: Silver globally surged past $100–$110/oz, levels unseen before.
Why Are Silver Prices Surging?
- Weak US Dollar & Safe Haven Demand: A softer US dollar raises silver’s appeal for international buyers. Many investors seek silver as a safe haven amid global market instability.
- Strong Industrial Demand: Silver is used in solar panels, EVs, electronics, and tech. Industrial demand now drives a large portion of total consumption.
- Supply Constraints: Silver supply growth is limited as most comes as a by-product of mining other metals. Recycling and global inventories are also low.
Silver Prices: Is It Still Worth Buying?
- Short-Term View: Prices are volatile; sharp pullbacks or corrections are possible. Quick flips could lead to losses.
- Long-Term View:
- Inflation Hedge: Silver protects purchasing power over time.
- Industrial Growth: Rising demand from the renewable energy and tech sectors.
- Diversification: Adds balance to investment portfolios.
- Expert Forecast: Silver may reach $120–$170/oz in 2026 if demand remains strong.
How to Invest in Silver
- Physical Silver: Coins, bars, jewelry; tangible but requires storage and security.
- Financial Instruments: Silver ETFs, futures, and mining stocks; more liquid than physical silver.
- Digital Silver Platforms: Buy silver without holding metal, convenient for small investors.
- Tip: Diversify across physical, financial, and digital silver for safer investing.
Risks & Things to Consider
- Price Volatility: Silver can swing widely in days; rapid rallies may reverse suddenly.
- Market Sentiment: Prices react to news, macroeconomics, and investor behavior.
- Storage & Premiums: Physical silver adds dealer premiums and storage costs.
- Industry Substitution: High prices may push industries to reduce silver use or switch materials, affecting demand.
Conclusion
Silver prices have reached a record ₹3.75 lakh per kg after a sharp 6% rise. Strong demand from industry, safe‑haven buying, and global trends have driven this surge. We, from the investment perspective,e believe silver can still be a good long-term addition to your portfolio, but short-term buyers should be cautious of volatility. Timing and diversification are key; don’t buy at the peak without a plan.
FAQS
Strong industrial demand, safe-haven buying, and a weak dollar are driving silver prices higher.
For long-term investors, yes, but short-term buyers should be careful of market volatility.
You can buy physical silver, silver ETFs, futures, or use digital silver platforms.
Prices can swing quickly, storage costs apply for physical silver, and market sentiment affects returns.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
