Silver made a stellar debut in 2026, soaring over 35%, or nearly Rs 85,000 per kg, investors rush towards the precious metal amid tightening supplies and escalating geopolitical tensions involving the US, Iran and Greenland. The white metal’s momentum further strengthened after MCX silver futures decisively crossed the Rs 3 lakh per kg milestone. During the latest trading session, prices advanced by more than 2.5%, rising nearly Rs 8,000 to settle at Rs 3,19,949 per kg. The fresh uptick followed renewed strains between the US and the European Union after US President Donald Trump threatened to acquire Greenland and impose punitive tariffs on Europe. Here’s what experts are sayingAamir Makda, commodity and currency analyst at Choice Broking, told ET, “silver at $94 per troy ounce, a level once considered unthinkable, is driven by a “perfect storm” of industrial scarcity and geopolitical shifts. Looking at Technical charts, we are expecting further upward momentum in Silver and immediate support would be at 20-DEMA level placed at Rs 255,100,” Makda, however, flagged early signs of fatigue in the rally. “Although in recent sessions, with a price up move, a bearish RSI divergence has emerged, and it is a classic “Red flag” warning,” he said, explaining that while prices are making new highs, the underlying momentum is weakening. He also highlighted a drop in open interest to 9,850 lots in the March contract, even as prices climbed, indicating long unwinding in silver. Traders holding long positions, he said, should consider booking profits at current levels. Jigar Trivedi, senior analyst at Reliance Securities, said the market may now enter a phase of time-based consolidation. While he acknowledged the possibility of near-term consolidation, Trivedi said the prevailing political and geopolitical environment could still push prices higher, potentially towards the psychological level of $100 per ounce. He noted that the broader international trend remains firmly bullish, though the risk–reward equation currently stands evenly balanced at 1:1 after the sharp rise over the past 13–14 months. In rupee terms, he identified Rs 3,30,000 per kg as the next important resistance. From an investment lens, the recent breakout is being seen as part of a longer-term structural trend rather than a short-lived spike. Justin Khoo, Senior Market Analyst at VT Market, said the move is supported by supply constraints and strong industrial demand, particularly from solar energy, electronics and electric vehicle segments. While elevated prices increase volatility, he said investors should focus on strategic positioning instead of chasing record highs. Tactical profit-taking may suit short-term traders, but for long-term investors, he said silver continues to act as a hedge against inflation and market uncertainty. Khoo added that the broader approach should be to buy on meaningful declines while maintaining core holdings, with risk management remaining central. Although the trend still points to further upside, disciplined entry and exit strategies are increasingly important at current levels. Akshat Garg, head of research and product at Choice Wealth, said new investors could consider silver ETFs as part of a diversified multi-asset portfolio to tap into the metal’s structural strengths. Existing investors, he said, should avoid exiting at current levels, as the underlying support remains intact.Garg further added citing experts that new investors should allocate 5–10% to silver and gold ETFs within a broader portfolio, viewing the exposure as diversification rather than a momentum-driven trade. Existing holders, he said, should remain invested through volatility, as institutional flows, ETF participation and long-term fundamentals continue to provide support through 2026. Analysts also point to silver’s dual identity as both a monetary hedge and an industrial commodity. With more than half of demand now coming from sectors such as solar power, electric vehicles, data centres and electrification, and with supply constrained by limited mine output and recycling, the market remains tight. This structure, they say, positions silver to potentially outperform gold during growth phases while still offering protection during volatile periods.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
