Silver surge alert: Rs 2 lakh/kg within reach — How to position your portfolio

Silver has long held a cherished place in Indian households, second only to gold, but its value extends far beyond tradition. From family heirlooms and temple offerings to industrial applications, silver remains a versatile and highly sought-after asset. With gold prices reaching record highs, investors are increasingly eyeing silver and other white precious metals as a growth-oriented alternative with industrial relevance.

According to CA Nitin Kaushik, the landmark price of Rs 2 lakh per kilogram may be closer than many expect. “Silver has already jumped roughly 30% in 2025, touching an all-time high of ₹1.11 lakh per kilogram in India,” he notes. Driving this surge is rising demand across industries such as solar energy, electric vehicles (EVs), and 5G technology, coupled with safe-haven buying amid global economic uncertainties. Limited supply growth has further intensified upward pressure on prices.

Silver plays a critical role in sectors including electronics, photovoltaic cells, and medical equipment. Its price in India reflects a mix of global market trends, industrial consumption, and cultural buying patterns, making it a unique asset class for both investors and industrial stakeholders.

Analysts’ outlook

Experts predict a possible 15–20% upside in the next 12–24 months. “If the current rally sustains, ₹2 lakh per kilogram is not just possible—it’s probable,” Kaushik said. Long-term investors are advised to accumulate physical silver, while traders can capitalize on momentum but should avoid over-leveraging.

Market Snapshot

On the Multi Commodity Exchange, September silver contracts recently slipped Rs 183, or 0.16%, to Rs 1,13,523 per kilogram, with a turnover of 14,778 lots. Analysts attributed the dip to profit-booking by participants. Globally, silver was trading at USD 38.01 per ounce in New York, down 0.36%.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson at Aspect Global Ventures, said: “Silver’s double role as both a bullion and industrial metal continues to support its healthy trend. With prices currently at ₹113,906 per kilogram, industrial demand and safe-haven purchases keep the upward trajectory intact. The ~30% rally this year, driven by solar and EV applications, makes near-term targets of ₹1.40 lakh per kilogram feasible, and even ₹2 lakh per kilogram by 2026 achievable. Occasional profit-taking is natural, but strong investor interest, particularly through ETFs, sustains spot prices.”

How to invest in Silver in India

Investors can choose from multiple formats:

Silver Coins: Ideal for smaller investments, available via banks and jewellers, with slightly higher premiums for design and packaging.

Silver Bars: Best for larger investments, offering better value per gram, but requiring secure storage.

Silver Jewellery: Decorative silver is less ideal for pure investment due to making charges and mixed metals.

Silver ETFs: Track spot prices in real-time, offering clarity and transparency under SEBI regulations.

Commodity Futures: A market-linked option for higher-risk investors, without holding physical silver.

Tax Implications

Silver purchases attract a flat 3% GST, applicable to coins, bars, and jewellery, including making charges. For silver ETFs:

Long-term gains (held >3 years): Taxed at 20% with indexation.

Short-term gains (sold ≤3 years): Taxed as per individual income slab.

Understanding these investment formats and tax implications helps investors make informed decisions and plan for wealth creation while navigating the rapidly rising silver market.