Silver prices surged past $38 per ounce in the global spot market on Friday, their highest level in over 13 years, as investor demand spiked amid geopolitical tensions and economic uncertainty. The precious and industrial metal has rallied 25% in the first half of 2025, narrowly trailing gold’s 26% gain.
Analysts attribute silver’s strong performance to growing demand for safe-haven assets and expectations of long-term value, especially given the elevated gold-to-silver ratio observed in April and May, which pointed to silver being historically undervalued.
Silver prices in India
In India, silver prices have followed suit, reaching an all-time high on the Multi Commodity Exchange (MCX). The metal hit Rs 1,11,750 per kilogram on Friday, while September delivery contracts rose Rs 1,762 (1.61%) to Rs 1,10,885 in a trading volume of 19,114 lots.
Analysts say the rise is driven by fresh buying positions from traders anticipating sustained global momentum. Since domestic silver prices are largely influenced by international trends and the rupee-dollar exchange rate, any depreciation in the rupee could further inflate local prices.
Spot traders expect silver to climb even higher if the global rally continues and the rupee weakens further.