Key reasons why silver price is rising
Subscribe to enjoy similar stories. Silver is once again the talk of the town. The white metal has rallied again, marking another stunning rise, this time above $90 per ounce in the global market and ₹300,000 per kg in India.
The chart of silver looks incredible. The recent gains have been parabolic. Usually, when we see such fast gains, there is always talk of a correction.
But so far, the bears have been proven wrong repeatedly… at $50, at $60, at $70, at $80, and now silver has crossed $90 per ounce. The magical three digits is within sight. In the global market, silver has tripled over the last one year.
We’ve seen similar gains in India. And the market’s expectations are for the upward momentum to continue in 2026. But will that be the case? Long-term silver investors are laughing all the way to the bank.
But they also want to know whether there is further upside if they continue to hold. Will the silver price continue to rise in 2026 or will the price fall? To find the answer, we must understand the factors that influence silver's price. Globally, central banks have been reducing interest rates, barring a few exceptions.
The idea is to support growth as inflation has declined meaningfully in many countries. Governments want to support growth rates and employment in 2026 and prevent a growth slowdown. Thus, investors are positioning for a world where money gets cheaper again.
Precious metals like silver don’t generate income, but they have the trust of the masses. When the benefit of holding cash/bonds declines (falling interest rates), silver tends to do well. This is because demand shifts from fixed-income assets to precious metals.
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