Silver Price Rally: China Moves Spark Global Boom

The impressive speed of the unprecedented bull silver market shows no signs of decelerating. Silver's stratospheric rise in prices has been fuelled by recent Chinese economic developments and sharply revised market policies. Driven by steady growth in demand for industrial applications in the silver market and a surge in demand for non-speculative entities to drive the price of silver well in excess of $100, the growth in silver prices has enticed investors from Wall Street to Mumbai. 

Silver's price has more than doubled. Pricing against gold, silver has outperformed gold almost 2:1 over the past 6 months. For Indian investors, now is the time to capitalise on the market opportunities available when market conditions are changing and when the price is steady.

In this blog, we will discuss the key drivers in this rally and outline the important role China plays in today's Indian silver market, monitor the daily estimates for silver in India, and analyse the all-time price peaks in silver. We will guide Indian traders on the silver MCX and provide a forecast for silver prices for the coming year. Lastly, we will provide Indian investors/ traders with the most important aspects of investing in silver.

Silver Price Rally 2025: What Happened?

2025 Silver price rally surprised lots of investors with silver’s price growing over 150% throughout the year. There was reckless trading and a growing industrial silver supply that matched the growing demand. With electronics, solar, and medical devices crucial for the economy, demand for silver is high, causing an economic slowdown.

Global inventories have plummeted. A supply deficit built for years, causing a major, tightly supplied market, found new key levels. Due to the market supply in tight zones, local premiums in major hubs, such as Shanghai elevated. Renowned for reckless trading, the market in December grew a stunning 120% forcing investors looking to hedge against the highly speculative market.

Here is a chart that shows what we can expect will happen to silver prices in 2025:

This price rise is part of a stronger trend: the current commodity supercycle. Many analysts have pointed to a potential “cup and handle” pattern in silver’s price history, suggesting potential future price run-ups of 700% or more. 

With central bank liquidity suggesting silver will maintain its current rapid growth, we can expect that run-up to occur, particularly with a 2026 silver price forecast of over $1000.

 

 

China’s Role in Sparking the Global Boom

China, as the world’s largest silver consumer and importer, is central to this global boom and was particularly influential in 2025. Chinese market sentiment and policies, coupled with the country’s green energy push and solar panel manufacturing, have been particularly influential in the recent increase in silver prices because each solar panel contains approximately 20 grams of silver.

Export Restrictions: From January 1, 2026, Chinese companies that wish to export silver must apply for special permits from the Ministry of Commerce (Mofcom).

Strategic Motivation: Amid worries about limited physical availability, the decision is primarily perceived as an attempt to give domestic industrial demand for green energy (solar, EVs) and high-tech applications top priority.

Market Impact: Global supply chains are anticipated to be disrupted by the limitations, leading to a sharp increase in prices as a result of the tightening of supply.

 

China’s recent investments to support the construction of new solar panel manufacturing facilities have led to rapid and unrestrained speculation in the silver price forecast, particularly when speculation suggested that silver prices had increased to over $80. In response to the rapid increase in silver prices, and contrary to the previous increases in solar panel manufacturing investments, China’s construction of new solar panel manufacturing facilities has been completed. 

The London Bullion Market Association instituted price controls to support the rapid increase in silver prices, which in turn led to a rapid increase in the price of silver. China’s construction of new solar panel manufacturing facilities has been completed. In response to the rapid increase in silver prices, the new European Union has implemented the Bullion Market Association Price Controls. The price of silver has increased to over $80. In response to the rapid increase in diamond prices, the new European Union has implemented the Bullio.

These actions show China's two positions: a demand driver and a market stabiliser. Tesla’s Elon Musk wrote on X “This is not good. Silver is needed in many industrial processes,” and even predicted economic repercussions and manufacturing shortages from the price spike, considering the silver contained in the batteries and EVs. 

The Shanghai Futures Exchange listed silver contracts at unprecedented trading volumes and altered the price of the spot market. The China effect is real and is causing positive sentiment changes in other markets, throwing the trade balance of countries like India off course, as exports to India have increased.

To visualise the extent of the market chaos, import data from China’s silver trading in 2025 is shown below:

Keeping in mind that China’s primary focus is on industrialisation, it is highly likely that the silver price rally is going to continue, hence, is going to be of great importance to global investors.

Silver Price Today India

Let's get into the Indian market and see how the silver price today India has experienced the same spike in global prices, but tailored to Indian parameters. As of December 29, 2025, the silver price in the Indian market is roughly trading at ₹258 per gram and ₹2,58,000 per kilogram across major Indian cities - Delhi, Mumbai and Kolkata. The price is a little more in Chennai at ₹281 per gram owing to increased demand in the region.

Silver prices have stabilised when compared with the heights achieved previously, although prices are still elevated when taking into account the early 2025 prices. Silver prices are put on hold at MCX. Current silver futures prices are approximately ₹2,63,149 per kilogram.

Consumers should account for the other charges when calculating the final retail price. The Goods and Services Tax (GST) and the making charges are both applicable, and they can raise the price by 3-5%. With the price of silver changing rapidly, live quotes offered on MCX India are useful for buying silver at the best price.

Silver Price History

2025 was a historic year for the price of silver. Silver prices reached a peak that had not been recorded for over 40 years. Due to increased safe-haven buying, the price of silver increased to $83.62 after crossing $79 per ounce for the first time on December 26, 2025.

With the prices of raw materials adjusting due to both pre- and post-production problems with the silver supply, 2025 saw the increased prices that resulted from adjustments. The price of silver in India increased to over ₹2,23,000 per kilogram. For buyers, the price paid relative to the price at which gold can be acquired is a significant metric. This value fluctuates greatly as compared to gold and offers a more aggressive investment for people looking to invest aggressively.

The recent price surge highlights silver's unique combination of being both an industrial metal and a financial asset. The rally has even outpaced oil prices. Silver is now more expensive than a barrel of crude oil.

Silver Trading in MCX

For Indian traders, the silver MCX is the best way to take advantage of the MCX price surge. The Multi Commodity Exchange has a variety of silver contracts, including silver futures, mini and micro contracts. Presently, the silver futures contract price is approximately 74.845 USD, and the contract price is fluctuating intra-day due to the global commodity price volatility.

Silver contracts in MCX settle in kilograms, and the margins are set very low at 5-10%, making it a very accessible contract to trade. To identify good entry points, many traders use the RSI and moving averages. There are many tools the traders can use on the platform such as an options chain, to strategise in high volatility environments, like during a straddle.

The recent surge in prices of silver has caused a large increase in the volume of open contracts, resulting in the MCX being relied upon as a reference point for the Indian wholesale silver markets.

Silver Price 2026 Forecast

Even though the silver price 2026 will probably be $100/ounce or higher, some are more cautious, including Bank America. So, pessimistic views surround the price of silver.

A more than 3% deficiency of silver is forecast for 2024, which will be corrected in 2025. In India, that will probably mean silver will sell for more than ₹3,00,000 for a kilo.

Silver Investment in India

Currently, silver investment in India is more attractive. This is true especially after 2025, when silver ETFs might have 160% or more gains. You can choose silver bars, silver coins, silver ETFs, or silver Kontinental stocks.

These are physical silver bars:

There are silver mutual funds which can offer zero commission on the first 10% of their shares. This is especially true for the first 5% shares in the yearly pie. The best returns are now 52% YTD, and therefore, it is important not to put more than 5% of total investments in silver. Consider a SIP in mutual funds.

A mine is a 20% capital gains tax on the long-term and on short-term, it is a 15% gains tax, which is to be paid to the government. When the price of silver exceeds $80, it will be good to go long.

 

 

Conclusion

Investment landscapes are changing as a result of the global boom caused by China's strategic actions and the silver price surge. Silver has enormous potential, from current Indian prices to projections for 2026. Be knowledgeable and take prudent action whether you're creating a portfolio or trading on MCX. This white metal may become even more brilliant as 2026 approaches.