Kolkata: On June 17 this year, silver futures breached the Rs 1 lakh/kg price level on MCX (Multi Commodity Exchange), state reports. Less than 10 weeks later, investment experts have started speaking of a price level of Rs 2 lakh a kg. We know that silver, which always played second fiddle to gold, is now riding the crest of demand not only as a safe-haven metal, but also as an eseential raw material in new age industries such as higg-end electronics, renewable energy etc.

In India, there is an additional demand of silver in the form of jewellery, utensils and material for decorative pieces, statuettes etc. Interestingly, the demand for silver has also risen after the abnormal rise in the price of gold due to geopolitical and trade related uncertainties in the past twop years. As a result, investors are also increasingly shifting focus on silver.

Nitin Kaushik, a chartered accountant and invetsment strategist, has written on social media that the upward pressure on silver is so significant that the prcie level of Rs 2 lakh/kg could be clsoer than one might think. “Silver has already jumped roughly 30% in 2025, touching an all-time high of ₹1.11 lakh per kilogram in India,” he notes. “If the current rally sustains, ₹2 lakh per kilogram is not just possible—it’s probable,” he mentioned.

However, Kaushik is not the first one to mention the hitherto unthinkable price level mof the white metal. “It would not be unrealistic for silver to retest levels around Rs 1,20,000/kg in the short term and potentially reach Rs 2,00,000/kg by 2026, given the bullish industrial momentum, favourable macro conditions, and sustained investor interest,” Renisha Chainani, head of research at Augmont, one of the cuntry’s prominent gold and silver refinery, was quoted as saying.

Silver has been a popular medium of investment for many in India. However, it was traditionally in the form of coins, bars and silverware. However, the instruments have increased in number, offering more avenues to the modern investor seeking inflation-beating returns from the white metal. These are silver ETFs and silver futures on the commodity exchanges.

Many prominent AMCs offer silver ETFs (exchange traded funds). If an investor has demat account, he/she can invest in silver ETF. ICICI Prudential Silver ETF was the country’s first silver ETF which was launched in January 2022. Other AMCs to offer silver ETF are HDFC, Nippon, Aditya Birla, Axis, DSP, Kotak, SBI, Tata and UTI. These rack spot prices real-time, are regulated by SEBI and are transparent. These don’t need the investor to hold physical silver and, therefore, is hassle-free. One can also buy silver futures, but these could be a bit more risky than ETFs.

One should remember that silver coins are appropriate for small investments. These can be purchased from leading jewelers and even banks. Those who want to invest larger amounts, can even consider buying bars. However, they involve the responsibility for keeping them safely. One can also think of investing in silver jewellery though making charges will be deducted when one wants to sell them.

The GST rate on silver is 3%. ETFs involve LTCG and STCG. If one holds silver ETF for more than three years, LTCG will apply. It is taxed at 20% with indexation. The STCG becomes applicable if the ETFs are sold before three years. The gains will be taxed at the income slab of the investor.

(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.)