By Business Desk,News18

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Even as gold remains the most preferred metal asset for investment in India, silver is quickly gaining ground among experienced players in the financial market. In the last year alone, silver investments have provided people with impressive returns.
According to the data available on the MCX website, silver’s three-year compound annual growth rate (CAGR) stands at 35.80 per cent in the market. Silver rates have undergone a significant jump in the last five years. In June, it surged to an all-time high in India. It touched ₹1,04,000 per kilogram in the spot market.
Factors That May Keep Silver Rates High In Coming Years
According to Manav Modi, analyst for precious metals research at Motilal Oswal Financial Services Ltd, the ongoing price surge in silver can be attributed to several factors, including the obvious growth in industrial and customer demand, enhanced security of exchange and a robust exchange-traded product (ETP) flow.
“As a key input in solar panels, electronics, and EVs, silver continues to benefit from structural growth in green technology. With supportive macro trends—including easing policies in China, the Fed rate cut, tariff uncertainty, and global supply tightness—silver is uniquely positioned to benefit from both safe-haven buying and economic recovery themes,” Manav told the Economic Times, stressing tariff uncertainty and tight global supply trends as two other key factors.
“2025 marks the fifth consecutive year of a supply deficit for silver, meaning demand continues to outpace supply—with over 50% of this demand coming from industrial uses, according to the Silver Institute.”
But Can Silver Price Reach Rs 3 lakh/Kg?
Business experts expect changes in the US tariff policies to also have a heavy influence on the silver rates in the near future. “The latest announcement of 100% pharma tariffs by US President Donald Trump, US H1B visa policies affecting export-dependent Indian IT firms, and expectations of continued US Federal Reserve interest rate cuts, which will make traditional financial instruments less attractive compared to precious metals,” said Trivesh D, COO, Tradejini.
Like gold, silver rates are expected to soar through the roof amid rising buyer capacity and industrial demand in India. Within the next few years, silver may even reach Rs 3 lakh per kg in price, according to Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Share and Stock Brokers Limited.
“Achieving a level of Rs 3 lakh/kg in silver could take 1-2 years, considering industrial demand continues to rise in silver with limited supplies, leading to a widening of the deficit in the coming years,” said Maneesh. For Trivedi, though, such a jump would require “extraordinary financial or geopolitical disruption” in India and across the globe.