Silver has been on a remarkable journey since the start of 2026, shooting up at a meteoric pace and capturing the attention of investors across India. The metal began the year on a strong upward trajectory, riding high on persistent supply shortages and surging industrial demand. According to 1 Finance Research, silver surged an astonishing 122% in 2025, fuelled by a fifth consecutive year of supply deficits and increasing consumption in sectors like solar energy and electronics.
Despite the impressive gains, silver has now entered a consolidation phase, as investors pause to evaluate the market and prices stabilise after last year’s steep rise.
On February 27, silver was trading at Rs 267,631, up Rs 8,031 or 3.09%, signalling that while momentum remains, the metal is taking a breather. Gold, meanwhile, continued to hold its ground at Rs 160,375, rising Rs 666 or 0.42%.
SILVER SEES CORRECTION, LONG-TERM STILL BULLISH
Ponmudi R, CEO of Enrich Money, said, “COMEX Silver is trading near $85–$90 after retracing from highs above $121. Despite the correction, the higher timeframe bullish structure remains intact. Strong buying interest is visible in the $70–$75 support zone. A sustained recovery above $92–$96 may re-establish upward momentum toward $100–$105. Industrial demand fundamentals and supply constraints continue to support the medium- to long-term outlook, though short-term volatility may persist.”
He added, “MCX Silver futures are trading in the 2,50,000–2,60,000 band following consolidation. While the broader long-term bullish bias remains valid, near-term price action reflects corrective undertones. Key structural support is positioned at 2,25,000–2,35,000. A sustained hold above this zone could pave the way toward 3,00,000–3,25,000 in the medium term. A decisive break below support, however, may intensify short-term pressure.”
PRECIOUS METALS RALLY SHOWS UNEVEN TRENDS
According to 1 Finance Research, the rally in precious metals has been uneven. Gold has held its gains on multiple structural supports, while silver surged more sharply due to tightening supply and rising industrial demand. For 2026, silver is given a neutral outlook with a risk rating of 3/5. Positive drivers include multi-year supply deficits, rising industrial demand in solar and electronics, and China’s supply restrictions. On the other hand, risks include a stronger US dollar and profit-taking after last year’s extraordinary 122% gain.
Animesh Hardia, SVP of Quantitative Research at 1 Finance, said, “2025 rewarded people who chased narratives. 2026 is a different game. Rate cuts are slowing, geopolitical risks are recurring rather than one-off, and India is at an inflexion point. The investors who do well this year will be the ones who understand which macro phase we’re in and position accordingly. The data says India has transitioned from slowdown to recovery. The asset allocation needs to reflect that shift before it becomes obvious.”
WHAT THIS MEANS FOR INVESTORS
For investors, silver’s current consolidation indicates a pause after last year’s extraordinary gains.
Short-term volatility may continue, but the medium- and long-term outlook remains positive, supported by ongoing supply constraints and strong industrial demand.
Staying above key support levels could allow silver to regain upward momentum, while a break below these levels may increase short-term pressure. Meanwhile, understanding India’s broader economic recovery and positioning accordingly will be key to making informed investment decisions in 2026.
