Silver prices hit Rs 3,00,000 per kg! Here is the next target

Silver prices: MCX Silver futures for March 5 delivery soared 5 per cent in Monday's trading to breach Rs 3,00,000 per kg mark for the first time ever. At 1.54 pm, silver futures were trading at Rs 3,03,319, up Rs 15,557 or 5.41 per cent. They hit a record high of Rs 3,04,200 earlier today, thanks to  the US President Donald Trump's latest tariff threat to eight European countries. 

Satish Dondapati, Fund Manager at Kotak Mutual Fund said the silver rally can mainly be attributed to a strong global geopolitical uncertainty, supply-side concerns, a weakening of dollar and a robust industrial as well as investment demand. 

"Additionally, precious metals received price support at higher levels due to the sudden imposition of tariffs by US on few European nations, following recent developments related to the Greenland issue," he said.

Trump said eight European countiries including France, Germany and The United Kingdom would face additional 10 per cent tariffs, which could rise to 25 per cent by June until the US is not allowed to buy Greenland. 

Silver crossing the Rs 3 lakh per kg mark is a historic milestone, reflecting intensifying safe-haven demand amid geopolitical tensions and global macro uncertainty, said Justin Khoo, Senior Market Analyst for APAC at VT Market. 

Also read: Investor flows into multi-asset funds surge in December 2025: Did gold and silver play a role?

From an investment perspective, Khoo said this breakout is not merely a short-term spike but part of a broader structural uptrend supported by supply constraints and robust industrial demand, particularly in solar, electronics, and electric vehicles. 

"While elevated levels introduce heightened volatility, investors should focus on strategic positioning rather than chasing record highs. Tactical profit-taking near these peaks is sensible for short-term traders, but for long-term investors, silver remains a compelling hedge against inflation and market uncertainty. Overall, the recommendation is to buy on meaningful dips and hold core positions, keeping allocations balanced with risk management in mind," he said.

Silver target prices

Aamir Makda, Commodity & Currency Analyst at Choice Broking is expecting further upward momentum in Silver and immediate support at 20-DEMA level placed at Rs 2,55,100. 

"For the upside levels, 261 per cent of Trend based Fibonacci Extension which is placed at Rs 3,62,937. Although, in recent sessions, with price’s upmove, we have observed a RSI bearish divergence on Daily charts which is a classic “Red flag” warning. It suggests that while the price is still climbing and hitting new peaks, the internal momentum driving those gains is actually weakening," Makda said. 

Along with this, Makda said he can see the fall in open interest (OI) levels to 9,850 lots parallel to price-rise so far in March contract, which suggests a unwinding of long positions in silver. Traders who already have long position, should look for a profit-booking at current levels, he said.

Ponmudi R, CEO of Enrich Money said the silver price action reflects strong dip absorption, making silver a high-beta outperformer in the precious metals space. 

"A decisive breakout beyond Rs 3,05,000 can open targets toward Rs 3,15,000 and higher. On the downside, dips below Rs 2,90,000 may test Rs 2,85,000, where strong buying interest is likely to emerge," he said.

Khoo said the trend favours continued upside, but disciplined entry and exit remain critical at these historically high levels.

"Over the past one-year, silver prices have surged by more than 170 per cent, while gold has gained over 70 per cent. Both metals are widely regarded as safe-haven investments, and silver being an industrial metal as well has an added advantage in the current macroeconomic scenario,” Dondapati said.

Amit Jain, Co-Founder of Ashika Global Family Office Services said said silver and gold are no longer just commodities, they are geopolitics in metal form. 

"When major powers fight over resources like Greenland, markets instinctively price in risk, and precious metals become the default refuge. This rally reflects not speculation, but a deeper loss of confidence in global stability,’’ he said.

How to invest in silver?

Vishal Kapoor, CEO, Bandhan AMC, said, silver as well as gold can play a meaningful role in portfolio diversification, but the way investors access these assets matters.

"Physical metal often brings uncertainties around purity, making charges, storage, and resale, while ETFs require demat accounts that many investors still do not use," he said.

Kapoor said the Fund of Fund (FoF) structure removes barriers such as demat requirements, lowers the entry point to Rs 1,000, and enables disciplined investing through SIPs starting at Rs 100.