MCX Silver Hits 14-Year High, Nears Rs 1.5 Lakh per Kg

On Monday, the Silver touched a new high based on the latest Multi-Commodity Exchange (MCX) data for September 29, 2025. The Silver futures have surged to a new 14-year high, trading at Rs 1,44,179 per kilogram, a historic milestone in the Indian market. Gold futures, meanwhile, have reached an all-time high of Rs 1,14,931 per 10 grams, reflecting parallel strength in the precious metals market. The current gold-to-silver ratio stands close to 81. It is the pattern where gold maintains broader outperformance relative to silver, yet with silver catching up during major rallies.

MCX Gold and Silver Performance

Throughout 2025, silver’s rapid ascent has attracted investors, with prices climbing more than 65 percent year-to-date, outpacing gold’s approximately 49 percent gain for the same period. For much of the previous decade, silver consolidated after its 2011 all-time high, which touched nearly a US$50/ounce, and then it lagged as gold set new benchmarks. Now, with gold prices consistently driving higher, silver has broken out of this consolidation phase till COVID and then spiked post-COVID on MCX, maintaining the observed gold-to-silver ratio range between 80 and 100.

What is Driving the Rally?

This rally reflects a combination of factors:

• Global safe-haven demand, heightened by economic uncertainties, expectations of interest rate cuts, and geopolitical tensions, has led investors to seek refuge in gold and silver as a hedge against inflation and currency risk.

• Industrial consumption: Silver’s unique role in renewable energies, electronics, and jewelry has provided a strong fundamental underpinning, especially as industries ramp up post-pandemic demand.

• Domestic macro factors: The depreciation of the Indian rupee and robust local demand have increased prices on MCX, making the metals even more attractive to Indian investors.

Historical Comparison and Ratio Dynamics

In 2011, silver reached its previous peak on the MCX, driven by global speculative buying and the broader commodities boom. Since then, it entered a long consolidation but never lost investor interest. Gold, however, continued to outperform, ensuring the gold to silver ratio in rupees stayed between 80 and 100 even at extreme points post covid. Pre-COVID, it was hovering around 60. In this current rally, silver’s price surge has narrowed the gap as the market transitions toward a new cycle in precious metals.

Demand Outlook and Strategic Value

For Indian investors and global participants alike, the demand for gold and silver remains robust. Gold is seen as a cornerstone of wealth preservation and central bank reserves, while silver delivers a dual edge, acting both as a safe-haven and as a strategic, irreplaceable industrial commodity. On MCX, heightened activity in futures trading reflects this enduring appeal, with both metals being essential parts of diversified portfolios and hedging strategies.

Conclusion

The record-breaking performance of silver and gold on MCX in September 2025 underscores their resilient demand, strategic importance, and the cyclical nature of precious metals markets. As silver breaks out to Rs 1,44,179/kg and gold tops Rs 1,14,992/10g, the gold to silver ratio stays close to 80, echoing long-term trends and signaling continued robustness in precious metals investing.