Silver prices hit lifetime highs: Here’s why your jewellery may get costlier and what this shock means for Indian buyers now

Silver prices recorded a historic surge across international and domestic markets this week, marking fresh lifetime highs amid a combination of geopolitical developments, supply constraints, and sustained industrial demand. The rally extended an ongoing bull run that has kept the white metal firmly in focus since the beginning of 2026.

On Wednesday, COMEX silver opened with an upside gap and reached a new lifetime high of $82.548 per ounce within minutes of the opening bell. The upward move followed continued strength seen over recent sessions, with prices remaining supported by global uncertainty and expectations of tight supply conditions.

In the Indian market, silver prices on the Multi Commodity Exchange (MCX) also touched a new peak. On Tuesday, MCX silver climbed to an intraday high of ₹2,59,322 per kg, before settling slightly lower at ₹2,58,000 per kg by the end of the session.

Market participants attribute the ongoing uptrend in silver largely to the escalation of the US-Venezuela crisis, which has raised concerns over potential disruptions to silver exports from Peru, Chad, Mexico, and other Latin American countries. According to market experts, these expectations of a demand-supply mismatch continue to favour a bullish bias in silver prices.

Analysts believe silver may continue to trade with a positive tone as investors factor in possible constraints on global supply. The situation has reinforced expectations that availability may remain limited even as demand continues to rise, keeping prices elevated.

Despite the broader bullish narrative, silver and gold saw some near-term pressure in recent trade. Spot gold slipped around 1% to trade near the $4,460 level, as investors booked profits following a brief rally to multi-session highs.

Silver prices also declined by more than 2%, trading near $79.3 per ounce. The pullback was linked to a firmer U.S. dollar, which hovered near multi-week highs, making dollar-denominated commodities more expensive for overseas buyers.

Market focus has now shifted to key economic data releases from the United States. Investors are closely tracking these indicators for clues on the Federal Reserve’s future interest rate path, with markets currently pricing in at least two rate cuts later this year.

While dollar strength may cap short-term upside, analysts say broader geopolitical risks and expectations of a more accommodative Fed continue to support a positive medium-term outlook for both gold and silver.

Silver prices have also created history in the international market earlier this year. On January 7, silver touched a new all-time high of $83.62 per ounce. Since the beginning of 2026, prices have risen by approximately 15%, reflecting sustained momentum.

Brokerage firms and industry reports point to a combination of continued supply shortages, strong industrial demand, and a favourable global macroeconomic environment as the key drivers behind this rally.

According to analysts at Axis Securities, silver continues to receive strong support from robust industrial consumption and ongoing exchange-traded fund (ETF) investment. They note that steadily rising demand from sectors such as solar power, electric vehicles, electronics, and auto components has kept silver at the centre of investor attention.

This trend is particularly significant as several countries accelerate their transition toward cleaner energy sources. In India, government plans to rapidly expand solar capacity have further strengthened domestic silver consumption. The increasing use of silver in solar panel manufacturing has added to demand in the local market.

On the supply side, conditions remain tight. Multiple brokerage reports citing data from the Silver Institute indicate that the global silver market has been in a structural deficit for the fifth consecutive year, meaning demand continues to exceed supply.

Around 70% of global silver production comes as a byproduct of mining other metals, limiting the industry’s ability to quickly ramp up output even when prices rise. Additional challenges such as declining ore grades, limited recycling, and flat mine production have further constrained supply.

Silver inventories in major markets, including London, China, and the United States, are also reported to be near multi-year lows, reinforcing concerns about limited availability.

Silver prices remain supported by strong demand and limited supply, keeping the metal in focus despite short-term volatility from global markets.