Silver Prices Dip Today: After a breathless rally that saw prices more than double in a single year, silver is finally taking a breather. On Monday, December 29, 2025, the national market saw a cooling trend, providing a brief window for buyers who have been sidelined by the metal’s meteoric rise.
While the “white metal” remains the undisputed champion of the 2025 commodities market—outperforming even gold and the Nifty 50—today’s dip reflects a standard round of profit-taking as the year draws to a close.
Today’s Rates: A City-Wise Breakdown
Nationwide, silver prices are trading at ₹258 per gram, a decline of ₹4 from yesterday’s peak. On a larger scale, the price per kilogram stands at ₹2,58,000, down by ₹4,000 from the December 28 high of ₹2,62,000.
Local premiums continue to vary significantly across the country. In Indore, Madhya Pradesh, the silver rate today is slightly more competitive at ₹2,554 per 10 grams, or approximately ₹2,55,403 per kilogram. Meanwhile, Southern markets like Chennai and Hyderabad continue to command a higher premium due to traditional demand.
Silver Price Comparison (Per 10 Grams)
| City | Price (Dec 29, 2025) | Price (Dec 28, 2025) | Change |
| Mumbai / Delhi / Bengaluru | ₹2,580 | ₹2,620 | -₹40 |
| Chennai / Hyderabad | ₹2,810 | ₹2,850 | -₹40 |
| Indore | ₹2,554 | ₹2,594 | -₹40 |
2025: The Year Silver Became ‘Gold on Steroids’
To understand today’s dip, one must look at the staggering growth of the past 12 months. On January 1, 2025, silver was trading near ₹90,500 per kg. Today, even after a ₹4,000 drop, it has delivered a year-to-date return of over 185%.
For context, an investment of ₹1 lakh in silver at the start of 2022 would now be worth nearly ₹3.67 lakh. This “multi-bagger” performance is the result of a perfect storm: high inflation, a weakening rupee (now hovering near ₹90 per USD), and a massive shift in how the world views silver.
The ‘Green’ Engine: What is Driving Demand?
Unlike gold, which is primarily a store of value, silver has become a critical industrial commodity. In 2025, 59% of global silver demand was driven by industrial applications. This shift is rooted in three key sectors:
- Solar Energy: Modern solar cells now require significantly more silver to maintain efficiency. As India scales its renewable energy capacity, the demand for photovoltaic (PV) applications has hit record highs.
- Electric Vehicles (EVs): An average EV uses nearly double the silver of a traditional internal combustion engine car, primarily for its superior electrical conductivity in battery management systems.
- Electronics & AI: From 5G infrastructure to the high-performance semiconductors powering AI data centers, silver’s role is non-substitutable.
This industrial hunger is meeting a structural supply deficit that has persisted since 2021. With mining production struggling to keep pace and China recently introducing export restrictions on refined silver, the physical availability of the metal is tighter than ever.
2026 Outlook: Is the Bull Run Over?
Most market analysts remain structurally bullish for 2026. While the rapid-fire gains of 2025 may “normalize,” the floor for silver appears to have shifted permanently higher.
Expert Predictions for 2026:
- Base Price: Analysts forecast a base of ₹2,40,000 to ₹2,46,000 per kg.
- Bull Case: If the global supply deficit deepens and industrial adoption accelerates, some targets point toward ₹2,75,000 per kg by mid-2026.
- Currency Impact: With the rupee expected to remain under pressure against the dollar, domestic prices will likely stay elevated regardless of global spot price fluctuations.
Investor Takeaway: Strategy for the ‘New Normal’
For retail investors and those in the tech/startup ecosystem, silver is no longer just “poor man’s gold.” It is a strategic asset linked to the future of the global energy transition.
Our Advice:
- Avoid Chasing Peaks: Today’s dip is a reminder that even the strongest bull markets have corrections. Use volatility to your advantage.
- Diversify via ETFs: For those wary of physical storage and purity issues, Silver ETFs and Mutual Funds offer a liquid way to participate in the growth.
- Long-term Horizon: Given the industrial supply squeeze, silver is best held as a 3-5 year play rather than a speculative trade.
What is your strategy for silver in 2026? Are you holding your positions through this dip or looking to accumulate more? Share your thoughts in the comments below.
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Disclaimer: Commodity investments carry market risk. Please consult with a certified financial advisor before making significant investment decisions.
