From Rs 1.82 lakh to Rs 1.49 lakh per kg: Is this the best time to buy silver?

New Delhi: After a fall of about 18% in silver prices in the last two weeks, there may be another buying opportunity for investors. While on one hand there is weakness in the market, on the other hand experts believe that silver can give returns of up to 50% by next year.

Will silver prices rise again?

Manav Modi, a research analyst at Motilal Oswal Financial Services, says that in the coming months, silver prices may remain between 50 and 55 dollars an ounce. Although there is scope for some profit booking, the bullish trend will continue in the long term. According to Modi, if the dollar index remains around 90, silver prices in India could go up to ₹2.4 lakh per kg. He estimates that by the end of 2026 the price in the international market may reach $75 an ounce.

How much did silver fall below the record level?

On October 16, silver was at a high of $54.45 an ounce in the international market, which has now come down to $ 48.59 - a fall of about 11%. Whereas in India the prices have come down from Rs 182,500 per kg to Rs 149,500 per kg. Improvement in global trade talks and lack of demand for safe assets among investors have pushed silver prices down. According to experts, profit-booking is also a major reason behind this recent fall, as silver had given excellent returns in the last one year — up to 44% in dollar terms and 56% in rupee terms.

Can prices go further?

Now the most asked question in the market is whether silver prices will fall further. Analysts say that due to a reduction in supply and an increase in industrial demand, prices will not go down much. According to Anil Ghelani, head of passive investment at DSP Mutual Fund, there is a potential supply shortfall of 118 million ounces in 2025. This is the reason why prices are expected to increase in the long term.

What advice are experts giving to investors?

According to Ghelani, as the world is moving towards green energy and electric vehicles (EV), the demand for silver will continuously increase. Due to limited supply and stability in mining, this metal may become stronger in the medium term.
However, Money Mantra founder Viral Bhatt warns that investors should avoid investing large amounts at once. He says that silver is a volatile asset and there is always a risk of short-term decline. Experts are of the opinion that investors should invest only 3-7% of their total portfolio in silver.