Silver prices surge: Silver prices on MCX rise, reaching record levels: Amidst growing uncertainty in the international markets and a weakening US dollar, investors are increasingly turning to silver. Silver is becoming an even more popular safe-haven investment option for investors, leading to a continuous increase in demand.
In the global market, silver is trading at approximately $115 per ounce, while on the domestic MCX exchange, its price has reached around ₹3.83 lakh. This surge is not solely due to technical factors, but also to broader reasons such as strong retail demand from China and the prevailing global economic conditions.
Strong demand from China is supporting silver prices.
Retail investors in China are showing increased interest in silver, with a large number of people investing in the metal. The rush to buy silver was so intense that one silver fund had to temporarily suspend trading. The fund's premium rose significantly above its net asset value (NAV), clearly indicating that Chinese investors are betting on silver.
Chinese manufacturers are also shifting their focus from producing silver jewelry to manufacturing 1-kilogram silver bars. This shift reflects the growing demand for silver as an investment. Therefore, it is expected that the current rally in this precious metal is not just a short-term phenomenon but could be sustained over the long term.
Dollar Weakness and Rising Demand
The weakness of the dollar, along with the prevailing global situation, has supported silver prices. According to data, the US dollar has fallen to its lowest level in the last four years. Simultaneously, the demand for silver in various industries is continuously increasing. For the past few days, industrial demand has been driving the rise in silver prices.
Silver Prices on the Multi Commodity Exchange:
On the Multi Commodity Exchange (MCX), at approximately 3 PM on Wednesday, January 28, the silver futures contract expiring on March 5, 2026, was trading at ₹3,76,899 (per kg).
Silver opened the trading day at ₹3,64,821. Compared to the previous day's closing price, silver saw an increase of approximately ₹20,500. During the trading day, the silver futures contract reached a high of ₹3,83,100.
