Silver Prices Cross ₹2 Lakh Per Kg as 2025 Rally Reaches 130%

On December 12, 2025, silver prices in India reached a significant milestone, surpassing ₹2,00,000 per kg. This marks a 130% increase in 2025, driven by various factors influencing the market dynamics. 

Silver's Remarkable Rise in 2025 

Silver futures in India have experienced a notable surge, crossing the ₹2 lakh-per-kg mark. As of 2:55 PM, silver futures were trading at ₹2,00,143 per kg, reflecting a 129% rise this year. This increase is attributed to a demand-supply imbalance and the metal's appeal as a safe haven. 

The rally in silver prices is partly due to the weakening US dollar and geopolitical tensions, which have heightened the metal's attractiveness as a secure investment. Additionally, global economic fragility and volatility in the Japanese bond market have contributed to the upward trend. 

Factors Driving Silver's Performance 

Silver's performance is influenced by several factors, including its industrial demand crossover with elevated copper prices. The metal's supply remains inelastic, as most mined silver is a by-product of lead, zinc, and copper mining, limiting the ability to scale output quickly. 

Gold's performance has also played a role in supporting silver's rally. Gold futures on MCX have risen by 75% this year, trading at ₹1,33,860 per 10 grams. The lower opportunity cost of holding gold, coupled with its safe haven appeal, has bolstered its demand. 

Read More: Silver Becomes the New Favourite as Demand Surges Across Sectors! 

Conclusion 

Silver's price surge to over ₹2 lakh per kg highlights its dual role as a precious and industrial metal. The factors contributing to this rally include demand-supply dynamics, geopolitical tensions, and industrial demand. The metal's appeal as a safe haven and its association with gold's performance have further supported its rise. 

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