If you’re considering investing in silver, now could be a great time.
Major brokerage firms like Motilal Oswal have advised investors not to miss the chance to buy silver if prices fall.
According to a report by Moneycontrol, silver prices in India could rise to Rs 1.35 lakh to Rs 1.50 lakh per kg within the next 12 to 15 months.
As of Tuesday, silver was priced at Rs 1,30,000 per kg, showing a Rs 3,000 increase.
Motilal Oswal highlights three key reasons behind this price rise:
Increasing industrial demand
Rising investor interest
Limited supply
Industrial Use Driving Demand
Today, about 60% of silver demand comes from industrial uses.
It is heavily used in solar energy, electric vehicles (EVs), 5G technology, and electronics.
For instance, China exported 127 GW of solar modules in the first half of this year, significantly boosting silver demand.
The growing use of silver in solar panels and EVs is expected to continue, supporting future price growth.
Growing Trust from Investors and Global Supply Shortage
Investor confidence in silver is also rising.
Large amounts of money are flowing into silver ETFs and mutual funds.
For example:
Saudi Arabia’s central bank has invested $40 million in silver ETFs.
Russia has allocated $535 million for its government silver reserves in the past three years.
India imported over 3,000 tonnes of silver in the first half of this year.
Meanwhile, there’s a global shortage of silver.
For the last five years, demand has exceeded supply, pushing prices higher.
Global factors also support silver as a “safe-haven” investment—similar to gold.
These include:
Ongoing geo-political tensions
Weakening US dollar
Possible interest rate cuts by the US Federal Reserve
According to Motilal Oswal, silver could reach up to Rs 1.50 lakh per kg in India and $45–$50 per ounce internationally.
Even though jewelry demand is currently low, silver’s use in green technologies and industries is keeping prices strong.
Expert Advice: Wait for the Right Time
Investors are advised to wait for a dip in prices before buying silver.
However, it’s important to consult a certified financial expert before making any investment decisions, as this analysis reflects Motilal Oswal’s personal opinion.
