Silver Hits Historic High! 6 Reasons Behind Bull Run; Know Silver Price Outlook And Investors Strategy

Silver Rate Outlook: Amid continuous chatter about soaring gold prices and expectations of the metal creating fresh highs, its peer, Silver, has offset a bull rally during the week. The white metal hit an all-time high mark on Friday by surpassing Rs 1.1 lakh per kilogram mark on the spot market.

Silver price is already near its all-time high mark and there are chances that the white metal may see more upward movement in the coming days amid rising geopolitical tensions and strengthened industrial demand.

Silver Hits All-Time High

The silver futures crossed Rs 1.10 lakh per kilogram in early trade on the Multi Commodity Exchange (MCX)on Friday. The surge in silver futures coincided with the surge in prices of silver in the physical spot market. Silver price in India increased by Rs 1,000 per kilogram to Rs 1,11,000.

Silver rate in India today, ie July 12, increased significantly by Rs 4,000 to Rs 1,15,000 per kilogram. The price of 10 gram of silver stood at Rs 1,150, whereas the price of 100 gram of silver surged to Rs 11,500 per 10 gram. The precious metal is currently trading at its highest-levels in India.

What Sparked Silver Rally?

Multiple reasons including geopolitical uncertainty, surge in industrial demand, supply side constraint, strong inflows in silver ETFs, and weakening of US dollar are among the key factors behind silver price rally, according to expert Ajay Kedia.

Safe Haven Demand

As the gold is already hovering near to its all-time high mark, silver emerges as an affordable investment option for investors who are looking for a relatively stable and cheaper alternative to prepare for the geopolitical uncertainties and stock market volatility.

Weakening US Dollar

The weakening of US dollar has also supported the rally in silver rates across the world. While the US dollar managed to end higher on Friday, the dollar index has declined nearly 10% so far this year in 2025. According to news agency Reuters, there was worry that the data could soon reflect more widely the damage US policies have had on the US economy.

Industrial Demand Surge

There has been a sharp surge in the industrial demand for silver, which indicated a boost in the global economic activities. The Industrial demand surge has come from solar, electric vehicles (EVs), electronics, and green energy applications. Silver plays a crucial role in the manufacturing of the items in this segment.

Silver Supply Side Concerns

Bottlenecks related to silver extraction and supply are also likely to impact the price of the precious metal. The declining global mine output and low recycling rates are some of the factors influencing silver supply chain.

Drop In Gold-Silver Ratio

Amid the constant gold price rally, there has been a significant drop in gold-silver ratio which made the white metal more attractive for investors to park their money amid volatility. According to Kedia, the gold-silver ratio dropped below 88 level narrows. Silver's undervaluation against gold led to a significant surge in its price. Additionally, a large number of buyers are now rotating from gold to silver seeking higher gains.

Diversification

The Central Bank reserve is now aiming at diversifying its reserves, hence a fresh buying trend of silver and gold is likely to support the demand for both the precious metal.

What Should Be Investors' Strategy?

The silver rate has witnessed a 'technical breakout' above key resistance levels that attract fresh buying and momentum trades. Silver is likely to "test next resistance towards Rs.118600/- while overall target for year-end will be still same at Rs.1,30,000/" noted Kedia.