Silver hits record Rs 1,70,415 on MCX: Nearly 20% gain recorded in October- What could it mean amid festive season rush?
Silver prices soared to a record high on the Multi Commodity Exchange (MCX) on Friday as the December 2025 futures contract climbed to Rs 1,70,415 per kilogram. This marks an increase of Rs 1,977 or 1.18% for the day.The surge in silver prices has resulted in a remarkable 19.8% gain for the month of October, rising from a closing price of Rs 1,42,145 on September 30. This significant monthly increase highlights strong festive demand and growing industrial interest in the metal.The recent rally has sparked renewed interest in silver’s long-term potential, with analysts attributing the uptrend to solid underlying fundamentals. Mahendra Patil, Founder and Managing Partner at MP Financial Advisory Services LLP (MPFASL), noted that silver is experiencing “a phase of structural endurance rather than speculative exuberance”, as quoted by Economic Times.Patil pointed out that while silver has historically been volatile, its past performance offers valuable insights. The metal previously approached the $50 per ounce mark in 1980 and 2011, and with 2025 marking its third such approach, the focus is now on whether it can maintain sustained momentum.In 2025, silver prices surged from $29 to over $47 per ounce, reaching “its highest level in more than a decade.” MPFASL attributes this momentum to several factors, including “higher expectations from US rate cuts, sustained central-bank buying, and industrial restocking across solar and electronics supply chains.”Highlighting silver’s dual appeal, Patil said, “Silver is gaining ground as both a symbolic and practical substitute. Beyond its decorative appeal, the industrial demand linked to solar panels, electronics, and electric mobility provides fundamental support to prices, creating a dual-use demand base that gold lacks.”The rise in silver demand is not limited to global markets. In India, silver imports have increased significantly. “Silver imports have expanded, reflecting its growing relevance as an industrial and investment metal within the renewable-energy and electronics value chains,” MPFASL reported.Data from the firm also revealed that silver delivered an annualized return of 32.92% in the CY2023–CY2025 period, with a volatility of 24.66%, based on historical performance. The correlation between gold and silver during this period stood at 0.95, indicating closely linked price movements, although silver’s trajectory has increasingly been driven by industrial factors.
Outlook
Looking ahead, MPFASL suggests that silver may continue to benefit from its industrial underpinnings. “Silver exceeded expectations, crossing $47 per ounce on renewed industrial restocking in solar and electronics,” the report noted.Most projections indicate that silver is expected to remain in the $44–50 per ounce range through FY2026. While gold may experience consolidation, “silver amplified the momentum as the cyclical bellwether of a broader industrial revival.”As India enters the festive season and global industrial restocking continues, the metal’s trajectory will likely depend on sustained demand from the electronics and renewable sectors. MPFASL adds that silver’s ability to surpass the $50 per ounce mark may depend on whether it can “finally build sustained momentum and move toward the next big landmark, its metaphorical ‘century.'”For domestic traders, Rs 1,70,415 now serves as a key resistance level on MCX. With industrial and festive tailwinds in play, attention will remain on whether silver can build upon this rally or consolidate near its current highs.(Disclaimer: Recommendations and views on asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
