Silver climbs to all-time high amid strong industrial demand

Silver surged to an all-time high of $54.42 per ounce on Friday (October 16).  In India, silver traded at ₹185 per gram and ₹1.85 lakh per kilogram.

N S Ramaswamy, Head of Commodities & CRM at Ventura, described the surge as a historic short squeeze. Global spot prices are trading at premiums over major futures contracts, driven by a near-total drying up of liquidity in London and other key trading centers.

Short sellers scrambled for physical metal and faced steep borrowing costs. In India, similar supply constraints led buyers to pay premiums over futures.

Silver’s demand is supported by its industrial applications in electronics, solar energy, and defense, accounting for roughly 59% of total usage. It also acts as a safe-haven asset amid geopolitical and economic uncertainty. Additional factors supporting prices include a weakening dollar, rising global debt, and ongoing trade disputes.

Rahul Kalantri, VP Commodities at Mehta Equities, noted that strong technical momentum and safe-haven buying continue to drive silver higher. The dollar index fell, US 10-year bond yields slipped below 4%, and sell-offs in crypto assets supported silver prices.

Silver has support at $52.70–53.50 per ounce and resistance at $54.55–55.20 an ounce.

With gold trading near all-time highs, investors are turning to silver as a more affordable safe-haven option. Strong industrial demand and constrained supply are expected to sustain bullish momentum, while limited production capacity continues to create a demand-supply imbalance.

Motilal Oswal Financial Services projects silver could reach $75 per ounce over the medium term.