Silver Prices Soar to Record High in India Amid Shortage of Physical Silver

Silver prices surged to an unprecedented high in India on Thursday, October 16, with MCX December 2025 contracts reaching ₹1.64 lakh per kilogram. The metal gained 1.33% from the previous close, fueled by strong domestic investment interest alongside dynamic global market factors.

Internationally, spot silver remained relatively stable at $53.07 per ounce after briefly hitting a historic peak of $53.60 earlier this week. The rally has been supported by gold’s upward momentum and a short squeeze in the spot market, highlighting tight physical availability worldwide.

Structural Shift in Silver Demand: Report by MOFSL

Motilal Oswal Financial Services (MOFSL), in its report “Silver 2030 – The Unprecedented Rise,”noted by CNBC-TV18, points to a fundamental revaluation in silver driven by accelerating industrial demand and sustained investor appetite.

According to MOFSL, global silver supply is around 31,000 tonnes, while demand exceeds 35,700 tonnes, creating a deficit of nearly 118 million ounces. This marks the fifth consecutive year of a structural shortfall in the silver market.

Industrial Demand at All-Time Highs

Industrial consumption is booming, particularly from the solar photovoltaic, electric vehicle (EV), and electronics sectors. The solar industry alone uses over 200 million ounces annually, with projections to rise to 450 million ounces by 2030. Each electric vehicle incorporates 25–50 grams of silver, with global EV production expected to hit 14 million units in 2025.

Also Read: Gold Prices Hit Record Highs in India on October 16 Amid Geopolitical Tension

Price Forecasts: Silver Set to Climb Further

MOFSL anticipates silver prices to trade within the $50–$55 per ounce range in the near term, with potential to reach $75 by 2026 and $77 by 2027 on COMEX. Domestically, silver prices could touch ₹2.40 lakh per kilogram by the end of 2026 and ₹2.46 lakh by 2027, assuming the dollar-rupee exchange rate remains near 90–92.

The shortage of physical silver is visible globally and in India. LBMA vault holdings have dropped 31% since 2020, falling from 35,667 tonnes to 24,581 tonnes. Meanwhile, silver ETFs in India have surged 69% year-to-date, with inflows spiking 180% in August alone.

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