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Kolkata: Silver is putting Sergei Bubka to shame. As predicted silver is extending its golden run in 2026 and setting new records almost every day. After blazing the returns trail with more than 150% jump in 2025, silver prices have appreciated an incredible 22% n just the first fortnight of 2026. What's most important for investors, while such fast rise in prices has to accompany phases of correction, analysts are not really predicting a crash of overheated asset classes as is usually heard in such situations.
The price of the white metal is now galloping towards the psychological mark of Rs 3 lakh per kg. What is of significance is that the price of the precious metal first breached Rs 2 lakh per kg mark on December 12, 2025 for the first time. In the Indian spot markets, price of the white metal sailed past the Rs 2 lakh mark on December 17.
The biggest reason for the relentless and dramatic price appreciation is the demand-supply imbalance, which analysts feel is a structural reality in the silver market since supply is not really in a position to whet demand in different sectors, all of which are rising. The demand is primarily from three sectors -- one, modern industrial sectors such as solar power, electric vehicles and high-performance electronics such as data centres; two, investors who are driven in increasing numbers to invest in the metal as prices rise and three, the traditional domains such as jewellery, utensils and figurines.
The astronomical rise in prices have boosted investor sentiment and investors in droves are putting their money in silver ETFs (exchange traded funds). Prominent ETFs such as Tata Silver ETFs, Nippon India Silver ETFs, ICICI Prudential Silver ETFs, HDFC Silver ETFs, SBI Silver ETFs are in the news.
On account of the unprecedented rally in silver prices, Tata Silver ETF was up around 5% on Wednesday, while Nippon India Silver ETF recorded 4.75% rise. ICICI Prudential Silver ETF and HDFC Silver ETF were up about 4.57% and 4.65% only on intraday trading on Monday.
The continuous price rise and the visibility of the tailwinds for the future is compelling AMCs to offer NFOs of Silver Fund of Funds. Bandhan has launched an NFO (New Fund Offering) of Silver ETF FoF. Silver ETF FoFs are also enjoying rising investment.
"Silver has been traditionally viewed as a medium of store of value in India. But the rise of the new industrial sectors such as solar power and panels, EVs and high-performance electronics is now creating fresh and high demand for the white metal. Add to this the FOMO that many is compelling many investors to rush to bullions and ETFs. By the way, ETFs invest directly in the metallic silver," said Wishlist Capital director Nilanjan De. He also pointed out that globally demand has outstripped supply for the past four years. It is not clear when the supply will keep pace with demand, he emphasizes.
"However, investors must note that silver is more volatile than gold. There can be sharp price swings. Therefore, investment in silver should be approached with disciplined allocation keeping in mind a medium to long term perspective," he said.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)
