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Silver is stealing the spotlight in global commodities, surging to a 14-year high and igniting bullish projections from leading financial analysts. On September 9, 2025, domestic silver prices in India touched Rs 1.30 lakh per kilogram, marking a sharp Rs 3,000 jump from the previous session. With global momentum and industrial demand accelerating, Motilal Oswal Financial Services has forecasted silver to reach Rs 1.35 to Rs 1.50 lakh per kg by 2026, making it one of the most closely watched assets in the precious metals space.
Key highlights from the silver rally:
1. Silver prices in India hit Rs 1.30 lakh/kg, highest since 2011
2. Motilal Oswal projects Rs 1.35–1.50 lakh/kg range by 2026
3. Global silver demand driven by solar energy, electric vehicles, and electronics
4. Supply deficits and central bank investments add bullish pressure
5. Silver outperforms gold over 12-month and 3-year periods
Global Drivers Behind the Surge
Silver’s rally is not just a domestic phenomenon. International markets have seen a parallel upswing, fueled by macroeconomic shifts:
- Expectations of aggressive rate cuts by the US Federal Reserve
- A weakening US dollar and falling Treasury yields
- Increased investor appetite for safe-haven assets amid geopolitical uncertainty
These factors have made silver more attractive both as a precious metal and as a strategic industrial commodity.
Industrial Demand: The New Engine
Silver’s dual identity—precious and industrial—is now more relevant than ever. According to Motilal Oswal’s Precious Metals Quarterly Report, nearly 60 percent of global silver demand is now industrial. Key sectors driving this surge include:
- Solar energy: China’s photovoltaic module exports hit 127 GW in H1 2025
- Electric vehicles: Silver is critical in battery and circuit components
- 5G infrastructure and advanced electronics: Silver’s conductivity makes it indispensable
This industrial momentum is expected to continue, reinforcing silver’s long-term value proposition.
Investment Flows and Central Bank Moves
Silver is also attracting strong investment flows:
- Saudi Arabia’s central bank invested $40 million in silver-linked ETFs
- Russia committed $535 million over three years to build state silver reserves
- India imported over 3,000 tonnes of silver in H1 2025, reflecting robust domestic demand
These moves signal growing confidence in silver as a strategic asset, not just a speculative play.
Technical Outlook and Market Sentiment
Analysts at Mehta Equities have pegged support levels for silver at Rs 1.23–1.24 lakh/kg and resistance at Rs 1.26–1.27 lakh/kg. The metal has consistently outperformed gold over the past year and even on a three-year basis, according to Value Research. However, experts caution that silver’s rallies often come with heightened volatility, unlike gold’s more stable trajectory.
Motilal Oswal recommends a buy-on-dips strategy, citing structural supply deficits and expanding industrial applications. The brokerage expects Comex silver to test USD 45–50 per ounce over the next 12–15 months, aligning with its bullish domestic forecast.
What This Means for Investors
Silver’s current trajectory offers multiple takeaways for investors:
- It’s no longer just a hedge against inflation—it’s a growth-linked commodity
- Industrial demand ensures long-term relevance beyond jewellery and bullion
- Volatility remains a factor, but strategic buying could yield strong returns
- Diversification into silver may balance portfolios tilted toward gold or equities
Recap of Key Projections
- Domestic silver prices expected to reach Rs 1.35–1.50 lakh/kg by 2026
- Comex silver forecasted to hover between USD 45–50 per ounce
- Industrial usage to remain dominant, especially in green technologies
- Supply deficits and central bank interest to support price momentum
Silver’s resurgence is more than a market blip—it’s a reflection of shifting global priorities, from clean energy to strategic reserves. For investors and industry watchers alike, the metal’s gleam is only getting brighter.
Sources: MSN India, Business Today, Economic Times
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