MCX silver tops Rs 2,50,000 per kg — what investors can expect from the white metal in 2026

Silver prices extended their climb on Tuesday, with COMEX silver trading over 1 per cent higher and closing in on $78 per ounce. On the domestic front, MCX silver opened higher and is hovering near Rs2,50,000 per kg. Traders point to a mix of geopolitical tensions like the US strikes in Venezuela—and global supply constraints as key drivers of the rally.

2025: A historic year for Silver

The rally this year has been extraordinary. In 2025, silver prices surged roughly 161 per cent year-to-date, touching a record $86.62 per ounce on COMEX before easing to $72 due to profit booking and CME margin adjustments. Tata Mutual Fund highlights that this surge is not just speculative. “Silver’s designation as a US critical mineral, combined with robust industrial demand and investor interest, has created strong structural support for prices,” said a Tata MF spokesperson.

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The fund observed that since mid-2025, investors have turned increasingly bullish, steadily accumulating silver.

Supply constraints keep rally on track

Global supply pressures remain a major factor. China’s export restrictions could expand the silver deficit from 2,500 tonnes to over 5,000 tonnes annually. In addition, ETF inflows in late November outpaced earlier outflows, while inventories across London, China, and the U.S. have dropped to multi-year lows. Tata MF points out that this scarcity reinforces silver’s bullish fundamentals, although sudden shifts in supply could temporarily temper gains.

Demand in the country powers the white metal

India’s silver imports have provided further support. Tata MF notes that India imported over 170 million ounces in the first ten months of 2025, down 20 per cent year-on-year. However, a surge in September–October, exceeding 2,600 tonnes, signals strong domestic demand. This combination of local and global factors has helped MCX silver hover near Rs2,50,000 per kg, forming a solid base for potential upside.

Silver Outlook for 2026

Looking ahead, Tata MF expects silver to remain in focus, though short-term volatility is likely. COMEX silver faces resistance at $78 per ounce, with possible targets of $82–$85 per ounce if breached. MCX silver may test Rs2,55,000 per kg once the Rs2,50,000 hurdle is crossed.

The fund advises investors to adopt a measured approach. Phased buying or systematic investment plans (SIPs) are recommended over lump-sum purchases. Year-end profit booking, portfolio adjustments, and revised 2026 demand-supply projections could lead to short-term corrections, making a disciplined approach essential.

Dual usage helps

Silver continues to benefit from its dual identity as a precious and industrial metal. Ongoing geopolitical uncertainty, supply constraints, and strong industrial demand make it an asset worth monitoring. Even if minor corrections occur, fundamentals remain intact, keeping silver in the spotlight for investors seeking both safe-haven protection and industrial exposure.