Silver is stealing the spotlight in the commodities market this week. On Tuesday, January 27, 2026, silver futures smashed through the psychological barrier of ₹3.5 lakh per kg, triggering a massive rally in mining stocks and specialized exchange-traded funds (ETFs).
Hindustan Zinc Hits 52-Week High
As India’s premier silver producer, Hindustan Zinc (a Vedanta Group company) became a primary beneficiary of the price surge.
- Stock Performance: Shares jumped 5% to hit a fresh 52-week high of ₹733.
- Market Position: With silver prices rallying over 50% so far in 2026, the company’s margins on refined silver (99.9% purity) have significantly expanded, drawing heavy investor interest.
The “Trump Tariff” Trigger
The explosive move in precious metals is largely attributed to escalating global trade tensions.
- New Threats: US President Donald Trump’s recent signal to raise tariffs to 25% on South Korean imports—following similar threats against Canada—has sent investors scurrying toward “safe-haven” assets.
- Record Futures: MCX Silver March futures surged over 7% to reach a lifetime high of ₹3,59,800 per kg. Global spot silver also flirted with record levels, touching $109.22 per ounce.
Silver ETFs Witness Double-Digit Gains
Investors who preferred digital silver over physical bullion saw massive intraday gains as ETFs mirrored the metal’s 7% jump.
| Silver ETF | Intraday Gain | Price / High |
| HDFC Silver ETF | ~12% | Record High |
| Zerodha Silver ETF | ~11% | ₹34.7 (New Peak) |
| Nippon India (Silverbees) | ~10% | ₹321.48 |
| Groww Silver ETF | ~10% | New 52-week High |
Expert Advice: Should You Buy Now?
While the momentum is undeniably strong, market analysts are waving a yellow flag for new investors.
- Volatility Warning: Silver is historically more volatile than gold. Steep climbs are often met with sharp corrections once speculative cooling occurs.
- Staggered Entry: Experts suggest Systematic Investment Plans (SIPs) or dollar-cost averaging rather than a “lump sum” entry at these lifetime highs.
- Profit Booking: Tactical investors who entered at lower levels are being advised to consider partial profit booking to protect their gains against a potential near-term pullback.