Silver has re‑entered the spotlight as investors scramble for safe‑haven assets amid global economic uncertainty. Recent spikes in the livemint article suggest the white metal could breach the coveted ₹3 lakh per 10 g mark on the MCX, while analysts debate whether the COMEX price could climb to $100 per ounce. This piece dissects the forces shaping silver’s trajectory, examines technical signals, and outlines what a sustained rally could mean for traders and long‑term investors.
Market fundamentals
Silver’s dual role as both an industrial metal and a monetary asset creates a unique supply‑demand dynamic. On the supply side, mining output has been constrained by higher production costs and geopolitical tensions in key producing regions such as Mexico and Peru. On the demand side, the metal benefits from a resurgence in photovoltaic and electric‑vehicle battery applications, while safe‑haven buying intensifies when equity markets wobble.
Global demand drivers
Three macro‑level trends are fuelling demand:
- Renewable‑energy expansion: Solar panel manufacturers consume roughly 30 % of global silver, and the International Energy Agency projects a 20 % rise in solar installations by 2027.
- Monetary policy uncertainty: Central banks’ cautious stance on interest rates pushes investors toward tangible assets, reviving the historic “silver‑as‑currency” narrative.
- Jewellery and silverware markets: Emerging‑market consumer spending, especially in India and the Middle East, adds a steady cultural demand component.
Technical outlook
Technical charts show silver breaking above the 200‑day moving average (₹2.8 lakh/10 g) and testing the ₹3 lakh resistance level. On the COMEX front, the price has oscillated between $22 and $28 per ounce this month, with bullish momentum indicated by a rising Relative Strength Index (RSI) above 60.
| Market | Current price (as of 10 Jan 2026) | Key resistance |
|---|---|---|
| MCX (10 g) | ₹2,95,000 | ₹3,00,000 |
| COMEX (ounce) | $27.80 | $30.00 |
Investment implications
For traders, the convergence of technical breakouts and fundamental tailwinds creates a compelling case for short‑to‑medium‑term positions. Long‑term investors, however, should weigh the volatility inherent to industrial demand cycles against silver’s historic store‑of‑value properties. Diversifying with silver ETFs or physical bars can hedge against equity drawdowns while preserving upside potential if the metal breaches the ₹3 lakh threshold.
In summary, silver’s price rally is anchored in robust industrial demand, heightened geopolitical risk, and favorable technical patterns. While a breach of ₹3 lakh on the MCX or $100 on the COMEX remains speculative, the prevailing market conditions suggest a continued upward bias in the near term.
Image by: Jakub Zerdzicki
https://www.pexels.com/@jakubzerdzicki
