New Delhi. The price of silver has crossed Rs 2 lakh for the first time. 1 kg silver is available for Rs 2.04 lakh in Delhi on Friday. One of the major reasons for the rise in silver prices is the 0.25 percent cut in interest rates by the US Federal Reserve. Due to this, people’s benefits in bonds and savings schemes will reduce and they will run towards commodities. In such a situation, gold and silver become the most attractive investment option. Apart from this, global metals have got a boost due to the weakening of the US dollar. When the dollar softens, investors invest more money in commodities, due to which prices go up. This is the reason why strength is being seen in zinc also.
Due to the rise in the price of silver, there was a tremendous rise in the shares of Hindustan Zinc, the company of billionaire businessman Anil Aggarwal. Shares of Hindustan Zinc and Silver rose more than 8 percent during trading on Friday. At the time of market closing, the company’s shares closed at Rs 561 on NSE with a gain of 7.34 percent. This stock has risen 16 percent in the last 4 trading sessions.
Why is Hindustan Zinc rising?
Hindustan Zinc shares are rising because it is the largest producer of silver in India. Hindustan Zinc produces refined silver with a minimum purity of 99.9 percent. Silver prices are expected to increase further, due to which Hindustan Zinc shares may go up further.
Buy shares or not?
According to technical analyst Drumil Vithlani, the stock has crossed the strong resistance zone of 540 to 550 this week. The continuously forming higher low pattern shows that accumulation was going on in the stock for the last several months. The RSI is at 66, which indicates bullish momentum. As soon as it closes above 560, the stock can reach 600 and further target of 640 can also be made. On the downside, the zone of 500 to 510 is a strong support.
Still well below all time high
The stock has risen 16 percent in the last 4 days and is up 27 percent so far in the year 2025. From the low of 378.15 in March to today’s high, the stock has jumped more than 50 percent. However, it is still down about 61 percent from its all-time high of 1443 in January 2011.
Why is there demand for silver?
Industrial demand is increasing tremendously
Silver is not just jewellery, it is also an industrial metal. Its use is increasing in every sector including electronics, solar panels, batteries, auto and medical devices. Especially the demand from the solar sector is at record level, due to which the consumption of silver has increased rapidly.
Solar power boom took demand to a different level
Silver is the most important material in solar photovoltaic cells. As the emphasis on green energy is increasing across the world, the consumption of silver is increasing at the same rate. This is the reason why the demand for silver has increased the most in the last 3 years due to solar alone.
Supply is tight, production is not increasing that much
Silver mining is not increasing as fast as the demand is increasing. Production is stagnant in many countries and has even fallen in some places. Because of this, supply is under pressure in the global market, while demand is high.
Acts as a safe haven in geopolitical tensions
When uncertainty increases in the world, people invest money in gold and silver. Tension between America and China, political crisis in Europe, and uncertainty in the Middle East have given silver the tag of safe investment.
Silver shines even with weak dollar
When the dollar weakens, commodities like silver and gold rise. At present the dollar index is under pressure, hence silver prices are going up.
Central Bank purchases and investors’ interest has increased
Big funds and traders are investing money in silver because they expect further growth. Central banks of some countries are also increasing the reserves of silver and gold.
Tech sector depends on silver
Silver has the highest conductivity. This is the reason why it is used in smartphones, laptops, AI server chips, EV cars, everything. Tech boom has also pushed up the demand for silver.
Investment demand high, huge inflow in ETFs
A lot of money is coming into silver ETFs these days. When ETF inflows increase, purchases of physical silver also increase and prices go up.
How will be the condition of silver in 2026?
According to Max Layton, Global Commodity Research Head of Citi, the price of silver has doubled this year and is comfortably above $ 50 an ounce. The reason for this is the supply deficit that has been going on for the last 5 years and the tremendous surge in industrial demand. Citi estimates that the rise in silver will continue further and in the baseline estimate it may go up to $62 while in the bullish scenario it is likely to reach $70. According to Layton, silver is behaving like a growth metal and investors are shifting their allocation from gold to growth-linked metals like silver, copper and aluminum as market sentiment regarding the US economy has become more positive in the coming months.
