There are no items in your cart
Add More
Add More
| Item Details | Price | ||
|---|---|---|---|
Gold and silver prices have reached levels never seen before. On Thursday, gold touched ₹1.75 lakh per 10 grams while silver crossed the ₹4 lakh mark per kilogram on Indian exchanges. In international markets, gold surged past $5,500 per ounce, and silver climbed above $119 per ounce. This dramatic rise has left many investors wondering what's happening and whether it's still a good time to invest in these precious metals.
The Numbers Behind the Rally The numbers are staggering. Gold has gained more than 27% so far this year, following a massive 64% jump in 2025. Silver has performed even better, soaring over 60% in just the first month of 2026. On Wednesday, gold futures on the Multi-Commodity Exchange (MCX) jumped ₹4,800 in a single day to reach ₹1,62,429 per 10 grams. Silver futures shot up by ₹21,400 to hit ₹3,77,655 per kilogram. The very next day, silver smashed through the ₹4 lakh barrier for the first time in history. Why Are Prices Skyrocketing?
Several factors are pushing precious metals to record highs.
Safe Haven Demand: When the world feels uncertain, investors rush to gold and silver. Right now, tensions are running high globally. President Donald Trump has warned Iran about potential military action, and Iran has threatened retaliation against the US and its allies. This kind of geopolitical stress makes people nervous about stocks and other investments, so they turn to the safety of precious metals. Weak US Dollar: The dollar has fallen to nearly a four-year low. When the dollar weakens, gold and silver become cheaper for buyers using other currencies, which increases demand. The dollar is under pressure from multiple sources, including a stronger Japanese yen and worries that European countries might sell their US Treasury holdings due to disputes over Greenland.
Federal Reserve Policy: The US Federal Reserve kept interest rates unchanged on Wednesday, as expected. Fed Chairman Jerome Powell also warned that America's budget deficit is unsustainable. This adds to economic uncertainty. When interest rates stay low or are expected to fall, bonds become less attractive, and investors shift money into gold and silver instead.
Central Bank Buying: Central banks around the world have been steadily buying gold to diversify their reserves away from the dollar. This consistent demand provides strong support for prices.
Silver Supply Shortage: Silver faces an additional challenge. Analysts at Standard Chartered predict another supply deficit this year. The real problem isn't just new production falling short of demand-it's that existing stockpiles are running low. This supply squeeze is pushing silver prices even higher than gold's gains.
What Experts Are Saying
Market analysts remain cautiously optimistic but warn of high volatility ahead. Manoj Kumar Jain from Prithvi Finmart notes that while the uptrend looks strong, prices are moving in sharp swings. He expects gold to hold support near $4,980 per ounce and silver around $98 per ounce on a weekly basis. For traders in India, experts suggest buying gold on dips as long as it stays above ₹1,56,000, with a target of ₹1,65,000. Similarly, silver can be purchased when prices fall, provided it holds above ₹3,44,000, with targets of ₹3,70,000 to ₹3,84,000.
The Investor's Alternative
Interestingly, many investors are choosing silver over gold because it's relatively cheaper. While gold prices have reached levels that feel expensive to individual buyers, silver offers similar safe-haven benefits at a lower entry point. This "affordable alternative" appeal is contributing to silver's stronger percentage gains.
An Unusual Disconnect
Not everyone is benefiting from soaring silver prices. Shares of Hindustan Zinc, India's leading zinc and silver producer, have actually fallen 2% despite record silver prices. This unusual situation is happening because parent company Vedanta is selling shares through an Offer for Sale at a discount. The discounted price is pulling down the stock temporarily, even though higher silver prices should boost the company's profits in the coming months.
Should You Buy Now?
This is the big question on everyone's mind. The fundamentals supporting gold and silver remain strong-geopolitical tensions, a weak dollar, and supply constraints aren't going away overnight. However, experts warn that these markets are extremely volatile right now. Prices are jumping hundreds or thousands of rupees in single sessions. Anyone investing now should be prepared for sharp swings and shouldn't invest money they might need in the short term. For long-term investors, buying on price dips might make sense. For traders, setting strict stop-losses is essential given the volatility. The golden rule remains: never invest more than you can afford to lose, especially in such uncertain times. While precious metals offer protection during turmoil, timing matters, and these historic highs come with equally historic risks.
Disclaimer:
This article is for informational purposes only and should not be considered as investment advice. Please consult your financial advisor before making any investment decisions. Investments in the market are subject to risks.