Silver prices increased by 0.10% to close at Rs 1,46,466, buoyed by robust safe-haven demand and persistent supply constraints. The metal has experienced a remarkable increase of over 70% this year, surpassing gold, driven by escalating fiscal concerns in the U.S., anticipations of interest rate reductions, and geopolitical uncertainties affecting the U.S., France, and Japan. Investor demand continues to be strong, fueled by concerns regarding global debt and the autonomy of central banks, while a scarcity of readily accessible silver in the London market has exacerbated supply constraints.
The bifurcated demand for silver, encompassing both investment and industrial applications like solar panels and renewable energy, is projected to result in consumption surpassing supply for the fifth consecutive year in 2025. Silver-backed ETPs experienced net inflows of 95 million ounces in the first half of 2025, elevating global holdings to 1.13 billion ounces, which is merely 7% shy of the peak observed in 2021. The aggregate worth of ETP holdings has reached an unprecedented level, surpassing $40 billion.
Retail investment in India increased by 7% year-on-year, indicating robust price expectations, whereas European demand showed signs of recovery from the diminished levels of 2024. The Silver Institute projects a 21% reduction in the global silver deficit, bringing it to 117.6 million ounces this year, driven by a modest increase in supply alongside a slight easing in demand.
From a technical perspective, the market is experiencing renewed buying activity, evidenced by a 3.46% increase in open interest to 27,850, alongside a price increase of Rs 142. Support is established at Rs 1,44,095, with a breach below this level potentially revealing Rs 1,41,725, while resistance is identified at Rs 1,49,160, and an upward movement could drive prices toward Rs 1,51,855.