Silver’s rise over the last year has been phenomenal, and the rally appears to have further steam left, driven by strong industrial demand amid constrained supply.
Silver prices have jumped by more than ₹32,000, or over 14% in the domestic spot market. On the MCX, March futures prices touched a fresh record of ₹2,92,865 per kg on Friday, January 16. Experts believe silver rates may hit the ₹4 lakh per kg mark.
“The 2.618 Fibonacci extension aligns near ₹2,96,737, which becomes the first major medium-term target. Beyond this, the 3.618 Fibonacci extension points towards the ₹3,56,871 level. An extended move in a strong momentum environment could even open up levels closer to ₹3,94,034 over time,” said Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities.
Strong industrial demand amid tight supply, robust inflows in exchange-traded funds, and a narrowing gold-silver ratio indicate the metal is enjoying bullish momentum. While intermittent pullbacks cannot be ruled out, the medium to long-term outlook for the metal remains bullish.
“In India, beyond its traditional role as a store of value, silver is increasingly driven by structural demand from solar energy, electronics, electric mobility and advanced manufacturing. As India accelerates its renewable and infrastructure ambitions, silver’s industrial relevance further supports its long-term price. Rising retail participation and growing interest from HNI and family capital are positioning silver as a portfolio diversifier alongside gold,” said Rajkumar Subramanian, Head- Products and Family Offices –PL Wealth Management.
“However, investors must remain mindful that silver is inherently more volatile than gold, with sharper price swings driven by global growth expectations, dollar movements and speculative flows. It is best approached with disciplined allocation and a medium- to long-term perspective,” said Subramanian.
Is it the right time to buy silver?
Anuj Gupta, A SEBI-registered analyst, expects silver to test $100 ( ₹3,00,000) by the end of FY26.
He suggests waiting for some correction to buy silver.
“The current prices are not the levels to buy silver, as the risk-reward is not preferred. Buy on dips around $60-$65 or ₹2,50,000 and ₹2,60,000, as they are good support levels,” said Gupta.
Vandana Bharti, the head of commodities research at SMC Global Securities, said with fundamentals remaining strong, a supply deficit amidst record demand may persist in 2026.
Bharti pointed out that silver isn’t just an investment avenue, it’s a critical mineral and a metal of national interest. Major countries are aggressively accumulating it to secure their supply chains.
“Given the record physical demand and ETF buying, prices are likely to stay within the $80-$115 range. Consider buying during corrections near ₹2,35,000- ₹2,50,000, as sharp declines are unlikely. We are projecting a potential high of ₹3.5 lakh in 2026,” said Bharti.
Read all market-related news here
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
