Safe-haven surge: Silver crosses Rs 1.10 lakh/kg amid global turmoil—will Robert Kiyosaki's $70 call come true?

Silver prices in India soared to an unprecedented Rs 1.10 lakh per kilogram on the Multi Commodity Exchange (MCX) on Wednesday, marking an all-time high. This surge reflects heightened investor interest in safe-haven assets amid ongoing geopolitical tensions, notably between Israel and Iran. The price of silver per kilogram in key Indian cities such as Delhi, Kolkata, and Mumbai stood at Rs 1,10,100. In contrast, Chennai saw a higher rate of Rs 1,20,100.

In the international market, silver prices also experienced a considerable increase, trading around $37.3 per troy ounce. This rise was noted for being the first time in over a decade that silver prices crossed the $37 mark per ounce. "Gold and silver prices saw high fluctuations amid geopolitical tensions. Silver broke above $37 an ounce for the first time in over a decade. Weakness in the rupee is also supporting silver in domestic markets," commented Rahul Kalantri, VP Commodities at Mehta Equities.

The present geopolitical climate, filled with uncertainties such as the Russia-Ukraine conflict and tensions in the Middle East, has driven investors toward precious metals. "Ongoing geopolitical tensions such as the Russia-Ukraine conflict and regional instabilities—alongside macroeconomic challenges, including inflationary pressures, recession risks, and fiscal imbalances in major economies like the US, are compelling investors to seek refuge in precious metals to safeguard their wealth," said Tejas Shigreka, Chief Technical Research Analyst at Angel One.

Further bolstering silver's appeal is its increased demand in industrial sectors, particularly for electric vehicles and solar energy. "Amid escalating geopolitical tensions and trade uncertainties, both gold and silver have surged, but silver is emerging as a strong contender," stated Jigar Trivedi, Senior Research Analyst at Reliance Securities.

Investment recommendations in silver are currently aggressive, driven by market volatility and international tensions. "We have recommended aggressive accumulation in silver. Given the uncertain global outlook — from Iran-Israel tensions to US-China trade strains — silver may revisit previous highs in the coming weeks," noted Sandip Raichura, Executive Director and CEO at PL Capital Group.

Moreover, analysts highlight the role of the weakening US dollar in enhancing silver's attractiveness. "Furthermore, a weakening US dollar enhances the attractiveness of silver and other dollar-denominated commodities to international buyers, boosting demand significantly. Trading volumes have also turned above-average amid rekindling interest from both institutional and retail investors." This trend is likely to sustain silver's upward trajectory in the near term.

Prominent financial author Robert Kiyosaki has also weighed in, predicting significant gains for silver within the year. "I predict silver will rise 2X this year to at least $70 an ounce," he noted in April, indicating a strong belief in silver's potential as an investment. This sentiment is echoed across market analyses, suggesting a continued bullish outlook for silver amid current global uncertainties. Silver's potential in the industrial sector and its role as a hedge against economic instability make it an attractive option for investors worldwide.