Silver hits record high of ₹2 lakh per kg

Silver on Wednesday touched a historical high of Rs 2 lakh per kg at the retail end, a jump of Rs 9,000 per kg from yesterday. The surge comes as weaker US labour data reignited expectations of Federal Reserve interest rate cuts, weakening the dollar and boosting demand for precious metals. A consumer now has to shell out Rs 2,06,000 per kg with a Goods & Services Tax (GST) of 3 per cent. Internationally, spot silver surged 2.8 per cent to a record $65.53 an ounce, marking the first time the white metal crossed the $65 level. The spot gold too edged 0.4 per cent higher to $4,321 per ounce, aided by continued weakness in the US dollar.The rally gained momentum after the US data showed the unemployment rate rising to 4.6 per cent in November, strengthening expectations of further monetary easing. Investor sentiment had already turned positive for non-yielding assets after the Federal Reserve delivered its final quarter-point rate cut of the year last week and struck a dovish tone in its outlook.V K Vijaykumar, chief investment strategist, Geojit Investments Limited said "What sets silver apart is its wide application in industrial uses. In the modern sunrise industries like EVs, solar energy, manufacture of electronic devices and mobile phones silver is used. The impressive growth of these industries have pushed up the demand for silver. In the absence of corresponding increase in sup[ply of this scare metal, price has shot up. There might be some profit booking, but silver prices are likely to remain resilient."“In the Indian context, silver is no longer just a tactical trade. With rising industrial usage and increasing retail participation through exchange traded funds and digital platforms, silver is emerging as a strategic portfolio diversifier—offering higher volatility than gold but also higher upside during commodity upcycles,” said Rajkumar Subramanian, head of Product & Family Office at PL Wealth.Silver’s strength is being driven not just by its role as a precious metal, but increasingly by its industrial relevance, he said. “From solar manufacturing and EVs to electronics, India’s clean energy and manufacturing push is structurally raising silver demand, making it a hybrid asset that benefits from both economic growth and periods of global uncertainty.”