Silver Cross Rs 2.06 Lakh In MCX, Rs 2.50 Lakh Projected For 2026

Chennai: Silver prices crossed Rs 2,06,000 per kg on the Multi Commodity Exchange, while international silver touched a new high of $66 per ounce. Silver, which rose 130 percent in 2025, has the potential to increase by 20-25 percent in the coming months.

Silver on Wednesday continued its notable rally, rising above $66 an ounce for the first time on record, driven by a combination of tight physical supply conditions, rising safe-haven demand, strong inflows into silver-backed ETFs and rising expectations for interest rate cuts from the U.S. Federal Reserve, according to Kotak Securities.

This saw silver touch Rs 2,06,111 per kg on the Multi Commodity Exchange.

Investment demand remains strong, with silver-backed ETFs continuing to attract buying interest and global holdings making inflows for the sixth consecutive week. Kaynat Chainwala, AVP, Commodity Research, Kotak Securities, said reports that China plans to restrict silver exports from 2026 have further increased momentum, a development that could disrupt a key source of supply and intensify pressure on the global market.

With China’s silver stockpiles already at their lowest levels in a decade, blocking any exports risks worsening the physical squeeze, strengthening the bullish narrative and possibly continuing high prices in the near term.

Silver has enjoyed a spectacular rally in 2025, with prices rising nearly 130 percent, reaffirming its reputation for sharp, momentum-driven moves. “Looking ahead to 2026, the outlook remains positive but much more volatile than gold. The metal carries an upside potential of 20-25 per cent, with MCX prices looking in the range of Rs 2,45,000 – Rs 2,50,000 and international prices looking around $72.5-74 per ounce,” said Ajay Kedia, MD, Kedia Commodities.

However, history suggests caution as silver tends to correct quickly after steep rallies, as seen in 1980 and 2011. He said corrections of 28-30 percent cannot be ruled out, especially if investment demand from ETFs weakens due to better opportunities elsewhere. Structurally, this cycle is supported by strong industrial demand from clean energy, solar power, data centers and electrification. Silver’s growing role as a “digital age metal” strengthens its long-term case; If supply constraints persist, $100 will remain a realistic long-term target.