Every cloud has a silver lining, they say. For investors in the white metal, that lining has turned into a gleaming profit sheet. Silver prices surged to fresh all-time highs on Tuesday, touching $94.75 per ounce globally before settling around $93.25-$93.30, while Indian markets saw prices consolidate above the historic ₹3 lakh per kilogram mark.

The metal has delivered a stunning 30 per cent return in less than three weeks of 2026. For those watching from the sidelines, the question is no longer whether silver is rising, but why, and whether this momentum can sustain.

Four forces driving silver higher

The current rally rests on four distinct pillars. First, global central banks have been reducing interest rates to support growth as inflation moderates. When cash becomes cheaper to hold, precious metals gain appeal as stores of value.

Second, geopolitical tensions continue to simmer. From US-Europe trade disputes to ongoing conflicts, investors are hedging against structural fragility in the global economy.

Third, and perhaps most transformative, is silver’s evolving identity as a “Green Metal.” “Silver stands out with its dual demand: monetary protection plus explosive industrial use in solar panels, EVs, data centers, and electrification, now over half of total consumption,” said Akshat Garg, Head of Research & Product at Choice Wealth. The metal’s superior conductivity makes it indispensable in solar panels, electric vehicle batteries, and semiconductor components.

Fourth is speculation – traders buying because prices are rising, creating self-reinforcing momentum.

What the charts say

Ponmudi R, CEO of Enrich Money, outlined the technical picture on Tuesday morning. “COMEX Silver has surged to fresh all-time highs near $94.75 and is currently consolidating around $93.25–$93.30 after minor profit booking. The breakout above the critical $90–$92 psychological zone now stands confirmed,” he said.

For Indian investors, “MCX Silver has staged a strong breakout and continues to show high-beta outperformance. Sustained trade above ₹3,10,000 keeps the momentum extremely bullish. Next major upside targets are placed at ₹3,20,000–₹3,25,000 in the near term, with scope to extend toward ₹3,35,000–₹3,50,000 over the next few months.”

The investment question

For those considering entry at these elevated levels, experts emphasize structure over timing. “New investors should consider taking positions in Silver ETFs as part of building a diversified multi-asset portfolio,” Garg said. “Target 5-10 per cent allocation to silver or gold ETFs within a broader multi-asset framework, treat as diversification, not a momentum play.”

For existing holders, “Existing Silver ETF holders should avoid exiting at current levels, as the supportive forces remain intact. Discipline beats timing, focus on conviction over short-term noise,” Garg advised.

However, the same factors driving silver higher could reverse. If interest rate cut expectations moderate, geopolitical tensions ease, or speculative fervor cools, the metal could face sharp corrections. Long-term investors should view silver as a portfolio diversifier rather than a substitute for growth assets, maintaining exposure through ETFs while avoiding leveraged speculation on short-term price movements.

Published on January 20, 2026