Silver prices in India touched an all-time high on Thursday, December 18, 2025, marking a historic moment for the precious metals market. The price of one kilogram of silver surged sharply across major cities, driven by strong global cues, rising industrial demand, and tight supply conditions. In Chennai, silver climbed to a record ₹2,24,000 per kg, while in Delhi and several other cities, prices reached ₹2,11,000 per kg.
Compared to the previous trading session, silver prices jumped by as much as ₹12,000 per kg, highlighting the strength of the ongoing rally. Market experts say this sharp rise reflects a combination of global uncertainty, investor interest, and increasing industrial consumption, especially in clean energy sectors.
On December 18, 2025, silver prices showed notable variation across regions. Chennai and Hyderabad reported the highest rates at ₹2,24,000 per kg, while most other major cities—including Delhi, Mumbai, Kolkata, Bengaluru, Jaipur, and Ahmedabad—saw prices settle around ₹2,11,000 per kg. The uniform rise across markets indicates strong nationwide demand and firm global trends.
According to commodity market experts, several strong factors are pushing silver prices to new highs. One of the key reasons is a global shortage of physical silver. Supply has remained tight due to lower mining output and limited availability in international markets, while demand continues to rise steadily.
Kotak Securities’ commodity research expert Kayanat Chainwala explains that safe-haven buying has played a major role in the recent surge. Ongoing investments in silver exchange-traded funds (ETFs) and expectations of interest rate cuts by the US Federal Reserve have made silver more attractive to investors seeking stability amid economic uncertainty.
Adding to supply-side concerns are reports suggesting that China may impose restrictions on silver exports starting in 2026. These reports have raised fears of further tightening in global supply, pushing prices higher as traders factor in future shortages.
One of the most striking trends this year has been silver’s performance compared to gold. While gold prices have risen by around 65 percent in 2025, silver has delivered returns of over 120 percent, significantly outperforming its traditional counterpart. This exceptional rally has drawn increased attention from both retail and institutional investors.
Experts believe silver’s strength is not limited to its role as a safe investment. Its growing importance as an industrial metal has also contributed significantly to price gains. Unlike gold, silver has extensive industrial applications, making it more sensitive to economic and technological trends.
Industrial demand has emerged as a major pillar supporting silver prices. The metal is widely used in electronics, medical equipment, and, most importantly, renewable energy technologies. The rapid expansion of the solar power sector has sharply increased silver consumption, as it is a key component in photovoltaic panels.
Market analysts note that as countries accelerate their shift toward clean energy, silver demand from the green energy sector is expected to remain strong in the coming years. This structural demand is adding long-term support to prices and reducing the chances of a sustained downturn.
According to Axis Securities, the global silver market has been running at a deficit since 2021, with demand consistently exceeding supply. The brokerage expects supply constraints to persist in the near future, which could keep prices elevated even if short-term corrections occur.
Some experts caution that after such a steep rally, silver prices may see temporary consolidation or minor pullbacks. However, most agree that any short-term correction should not be seen as the end of the uptrend. Strong fundamentals, limited supply, and robust industrial demand continue to support a bullish outlook.
Overall, silver’s record-breaking rally reflects a powerful mix of global economic factors, investment demand, and industrial usage. With supply remaining constrained and demand showing no signs of slowing, silver prices are likely to stay firm in the medium to long term.
For investors, market watchers suggest staying cautious in the short term due to high volatility but maintaining a positive outlook given silver’s strong fundamentals and growing role in the global economy.
