Silver prices in India moved into record territory in mid-January 2026 and surprised even long-time market watchers. On January 14, 2026, silver traded close to ₹2.90 lakh per kg on national benchmarks. At the start of the year, prices stood near ₹2.38 lakh per kg. This means silver jumped almost 22 percent in less than two weeks. Such a sharp rise rarely happens without strong global and domestic support.
In physical bullion markets, prices also touched new highs. Delhi markets reported silver near ₹2.71 lakh per kg on January 13. In Ahmedabad, prices hovered around ₹2.62 lakh per kg. These levels already placed silver very close to the psychological ₹3 lakh mark, which traders track closely.
The global silver market added major fuel to the rally. On January 14, 2026, spot silver crossed $90 per ounce for the first time in history. This breakout came after softer inflation data from the United States strengthened expectations of interest rate cuts. Lower rates usually support precious metals because investors move away from yield assets.
Once silver crossed $90, buying momentum increased quickly. Silver tends to move faster than gold during strong trends. A 3 to 5 percent move in silver can happen in a single session, especially during volatile phases like the current one.
With Indian prices already near ₹2.90 lakh per kg, silver needs only a small push to touch ₹3,00,000. The gap looks small when compared to the daily swings silver shows. A global move of a few dollars per ounce or mild rupee weakness can easily lift domestic prices to this level.
Traders also focus on round numbers. When prices approach such levels, activity increases. Short covering and momentum buying often appear at the same time, making moves faster than expected.
The silver market continues to face tight supply conditions. The Silver Institute reported that industrial demand reached a record 680.5 million ounces in 2024. Solar panels, electric vehicles, electronics, and power infrastructure drive this demand. These sectors do not slow down quickly, even when prices rise.
The silver market also recorded deficits for multiple years. Even though the deficit narrowed slightly, demand still exceeded supply. Mining output does not increase fast because new projects take many years to develop. Recycling improves at higher prices, but it does not close the gap fully.
Silver plays a key role in the clean energy shift. Solar panels consume large amounts of silver, and global solar capacity keeps expanding. Data centers, electric grids, and advanced electronics also use silver heavily. This industrial demand gives silver a strong base, unlike pure safe-haven assets.
At the same time, investors treat silver as a monetary metal. During global uncertainty and geopolitical stress, investors move money into precious metals. This dual demand makes silver powerful during macro shifts.
India remains one of the largest consumers of silver. Industrial users, jewelers, and investors all add to demand. Strong imports in recent months show confidence in the metal. When global prices rise quickly, domestic markets often see tight availability for a short time. This pushes local prices higher than international parity.
Any concern around supply chains or shipping adds further pressure. Dealers then raise premiums, which directly reflect in retail prices.
Silver rallies rarely move in straight lines. Profit booking can appear after such a fast rise. Exchanges may also raise margin requirements to control volatility. These steps usually cool down speculative activity for some time.
High prices encourage recycling and scrap supply. Over time, this can soften tightness in the market. A sudden shift in global monetary policy or a stronger US dollar can also hurt silver prices.
Silver shows strong momentum as 2026 begins. Prices already moved from ₹2.38 lakh to nearly ₹2.90 lakh per kg within days. Global prices above $90 per ounce signal confidence in the trend. If current conditions stay intact, silver can test ₹3 lakh per kg in the near term.
The market may see sharp ups and downs, but the bigger picture still looks supportive. Strong industrial demand, rate cut hopes, and supply tightness keep silver in focus. The white metal may surprise again, just like it did earlier this month.