Silver Beats Gold! Price Hits ₹2.7 Lakh as China Triggers Crisis

The global commodities market is witnessing an unprecedented Silver War, with prices skyrocketing to historic levels. In India, silver prices have surged to ₹2.7 lakh per kilogram, raising serious concerns for industries, investors, and policymakers alike.

Experts point to China’s new export licensing policy, rising geopolitical tensions, and massive industrial demand as the key reasons behind this dramatic spike.

 

Silver Prices Triple in One Year

Silver prices in the MCX market touched ₹2.4–₹2.7 lakh per kg in January 2026, compared to just ₹80,000–₹85,000 per kg in January 2025. This means silver prices have nearly tripled within a year, outperforming gold and most other commodities.

Silver is now among the top-performing commodities of 2025–26.

 

China’s New Export Rules: A Global Shock

China, the world’s largest silver processor, introduced a license-based export system from January 1, 2026.

 

What Changed?

Only government-approved firms can export silver

Every shipment requires official approval

No outright ban, but tight controls

Since China processes nearly 90% of the world’s silver raw materials, this move has disrupted global supply chains and fueled market uncertainty.

 

🇮🇳 India’s Record Silver Imports

India has emerged as a central player in the global silver market.

Key Import Data:

• 2025 silver imports: $9.2 billion (₹78,200 crore)

• 44% growth compared to the previous year

• India controls 21.4% of global refined silver trade

• Major suppliers include:

• Hong Kong – 38.4%

• United Kingdom – 31.7%

Despite massive imports, India exports very little silver, increasing its dependency on global supply chains.

Why Silver Is Critical for Industry & Green Energy

• Silver is no longer just a precious metal for jewelry.

• Major Industrial Uses:

• Electronics & circuit boards

• EV batteries & automobile components

• Medical devices & water purification

• Solar photovoltaic (PV) cells

15% of global silver demand comes from solar energy alone

55–60% of the total demand is industrial

Due to its superior conductivity and antibacterial properties, silver has become indispensable for the green energy transition.

Silver Supply Crisis & Mining Challenges

Silver demand has exceeded supply for five consecutive years, creating an annual deficit of 200–250 million ounces.

Why Supply Can’t Catch Up:

Only 25% comes from pure silver mines

70% is a by-product of copper, lead, and zinc mining

New mines take 15–25 years to become operational

According to the Silver Institute, global mine production will remain around 813 million ounces in 2025, indicating continued shortages for the next 10–15 years.

 

India Needs a New Silver Strategy

• Experts warn that India must rethink its approach to silver.

• Suggested Measures:

• Secure overseas mining partnerships

• Boost domestic refining capacity

• Diversify import sources

• Treat silver as a strategic mineral, not just a precious metal

• Many analysts now believe “Silver security equals energy security.”

Frequently Asked Questions (FAQ)

Q1. Why are silver prices rising so fast?

Silver prices are rising due to China’s export controls, supply shortages, high industrial demand, and geopolitical tensions.

Q2. Has China banned silver exports?

No. China introduced a license-based export system, making approvals mandatory for every shipment.

Q3. Why is silver important for green energy?

Silver is essential for solar panels, EVs, and electronics due to its high electrical conductivity.

Q4. Will silver prices increase further?

Experts predict continued volatility and potential price increases due to long-term supply constraints.

Q5. Is silver now more valuable than gold?

While gold remains costlier per gram, silver has outperformed gold in price growth recently.

Conclusion

The ongoing Silver War highlights a major shift in global commodity dynamics. With China tightening exports and industrial demand surging, silver has evolved from a luxury metal into a strategic resource.

For India, the challenge is clear: secure supply, strengthen domestic capabilities, and prepare for a future where silver plays a critical role in energy and technology.