Silver prices in India may climb to as high as INR 1.5 lakh per kilogramme in the long term, driven by rising industrial demand.
NEW DELHI — Silver prices in India may climb to as high as INR 1.5 lakh per kilogramme in the long term, driven by rising industrial demand, safe-haven buying, and a widening supply deficit, a new report said on Tuesday.
In its latest Precious Metals Quarterly report, Motilal Oswal Financial Services Limited (MOFSL) recommended investors to buy silver on dips. The brokerage said the metal is gaining strong support from trade tensions, robust investment inflows, and demand from industries such as electronics and renewable energy.
Silver has witnessed a strong rally with a 37 per cent YTD surge, supported by both safe-haven demand and industrial usage.
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"After achieving earlier targets of INR 1,11,111 and INR 1,25,000, silver is now expected to move towards INR 1,35,000 followed by INR 1,50,000 on the domestic front (assuming USD to INR exchange rate at 88.5)," the firm noted adding that on COMEX, silver could test $45 followed by $50.
Long-term support levels are placed near INR 1,04,000 to INR 1,08,000 zone, with buying on dips recommended over a 12–15 month horizon, MOFSL said in a release.
In 2025, silver showed 81 per cent correlation with gold and 75 per cent with copper, reinforcing its dual role as an investment and industrial metal, the broking house said.
Geopolitical tensions, tariff uncertainty from the US administration, and expectations of a 25 basis points US rate cut in September are supportive factors for the rally.
Further, International Monetary Fund (IMF) has revised global growth forecasts upwards, with inflation hovering near central bank targets, MOFSL noted.
Industrial demand is expected to account for nearly 60 per cent of total production in 2025, it said. China's GDP growth is steady at 5 per cent, despite challenges and PV module exports reached 127 GW in H1 CY25, strengthening silver’s industrial demand outlook.
Jewellery demand is expected to decline by 6 per cent this year but supply constraints persist, leading to a fifth consecutive year of deficit in the market, the broking house noted.
Silver ETFs and ETPs saw significant inflows in 2025, with the Saudi Central Bank investing $40 million in silver-linked ETFs. Russia also intends to acquire $535 million in silver for its reserves.