Silver price crosses Rs 2 lakh mark for first time, here's the outlook and risks ahead

Prices of silver crossed the Rs 2 lakh per kg mark on MCX for the first time ever tracking the broader uptrend in precious metals. Silver rates hit a record high of Rs 2,00,362 per kg on the MCX today rising Rs 1420 against the previous close of Rs 1,98,942. 

Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures said, "Silver price is rising further due to encouraging industrial production trends and a weakening dollar. The momentum remains positive, with anticipation of growing industrial and clean energy demand."

Silver prices have already zoomed 100% in 2025.  According to a report by Axis Mutual Fund, demand for silver has been boosted by sectors like solar energy, electric vehicles and semiconductors which continue to expand. Silver benefits from investor rotation into commodities and strong momentum in other metals which has lifted overall sentiment.

The sharp rally in silver prices is fuelled by geopolitical tensions, worries over the economic fallout of US tariffs, strong central bank purchases, and significant inflows into ETFs.

The precious metal faces risk of overvaluation leading to any weakness in physical demand, potential ETF outflows and profitbooking, which could weigh on the silver prices going ahead.