Silver hits all-time high of $83.62 an ounce, up 15% in 2026 so far

Silver prices climbed to all-time high of $83.62 an ounce, extending gains to about 15% so far in 2026, as a combination of constrained supply, resilient industrial demand, and supportive global macro conditions continued to drive the rally, according to brokerages and industry reports.

Analysts at Axis Securities said silver remains well supported by strong industrial consumption and improving investment flows.

The brokerage noted that demand from solar power, electric vehicles, electronics, and auto components has kept the metal in focus, particularly as countries accelerate energy-transition plans.

India’s push to expand solar capacity has added to domestic offtake, reinforcing demand fundamentals.

Supply conditions, however, remain tight.

Data from the Silver Institute, cited by multiple brokerages, show that the global silver market has been in a structural deficit for five consecutive years, with demand consistently outpacing supply. Around 70% of silver production comes as a by-product of other metals, limiting the industry’s ability to respond quickly to higher prices.

Flat mine output, declining ore grades, and modest recycling flows have kept availability constrained, while inventories in key markets such as London, China, and the US remain at multi-year lows.

Policy developments have added to supply-side risks.

Research referenced by InCred Money and Axis Securities highlighted concerns around China’s tighter export controls on silver, which could further restrict global shipments from one of the world’s largest producers.

Analysts warned that the existing global deficit could widen if export approvals become more restrictive.

From a macro perspective, a softer US dollar and expectations of future US rate cuts have provided additional support. Lower global yields tend to improve the appeal of precious metals, while currency movements can amplify price swings in India.

Market participants continue to track the dollar index, US bond yields, and the rupee alongside domestic MCX silver prices.

Investment demand has also strengthened after a prolonged period of ETF outflows.

Axis Securities pointed to a turnaround in silver ETF flows, with inflows in recent months offsetting earlier liquidation. Geopolitical uncertainty and elevated global debt levels have further supported investor interest, reinforcing silver’s dual role as both an industrial and precious metal.

Outlook commentary from InCred Money and Tata Mutual Fund suggests that silver could remain constructive over the medium to long term, even as volatility persists. Both flagged that consolidation and pullbacks are normal after a sharp rally, particularly amid profit-taking, exchange margin adjustments, or changes in US rate expectations.

However, they said the broader trend remains anchored in demand-supply imbalances rather than speculative excess.

Analysts added that while short-term corrections cannot be ruled out, silver’s performance reflects a market driven by industrial necessity, constrained supply, and global macro support, setting it apart from other precious metals in the current cycle.