The surge comes on the back of robust industrial demand, investment inflows, and expectations of monetary easing by the US Federal Reserve, with analysts projecting a long-term trajectory that could see the white metal climb to Rs 2,00,000/kg by 2028.
Analysts point out that silver’s recent momentum has been fueled by a mix of global cues and domestic factors, including rupee weakness and strong support from the photovoltaic sector in China.
With prices already on track for solid monthly gains, experts suggest that silver’s long-term structural outlook remains super bullish, with investors advised to accumulate on dips as the market builds towards record-setting levels in the coming years.
Silver prices to scale higher
Manoj Kumar Jain of Prithvifinmart Commodity Research said, “Silver prices hit 5-week high in the international markets and prices hit lifetime high in the domestic markets. Strong industrial and investment demand is fueling this metal. A rupee weakness and Fed rate cut expectations are additionally supporting silver prices.”He expects silver to scale higher both in the near term and in the longer horizon, noting, “We are expecting that silver prices could test $42 per troy ounce and rupees 1,30,000 per one kilogram by the end of this year. Overall long-term trend is super bullish for silver and prices are likely to test $50 by the end of 2026 and $65 by the end of 2028. In Indian rupees, prices are likely to test rupees 1,60,000 by the end of 2026 and rupees 2,00,000 per kilogram by the end of 2028.”Jain added that support levels remain strong, pointing out that Silver prices are having major support at $35.80 per troy ounce and Rs 1,08,800 in the domestic markets. He suggests investors to accumulate silver on every dip until prices hold Rs 1,08,800 on a weekly closing basis for the long-term target of Rs 2,00,000 by the end of 2028.”
Echoing similar optimism, Jigar Trivedi, Senior Research Analyst – Currencies & Commodities at Reliance Securities, said silver remains on track for healthy monthly gains.
“Silver traded around $38.8/oz and was on track to gain about 6% in August, supported by a weaker dollar and lower Treasury yields as investors ramped up bets on Federal Reserve rate cuts,” he explained.
On the industrial front, Trivedi highlighted the importance of solar demand, stating, “On the industrial side, silver demand gained support from strong data in China’s photovoltaic sector. Recent figures showed Chinese solar cell exports surged more than 70% in the first half of the year, driven by robust demand from India.”
Looking ahead, he projected milestones in the coming years: For short term, he sees silver prices rallying up to Rs 1,20,000/kg by Diwali 2025, while in the long term, the prices can surge up to Rs 1,40,000/kg (by summer 2026).
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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