New Delhi : Silver prices in India could rise to Rs 1.5 lakh per kilogram in the long term, fueled by increasing industrial demand, safe-haven buying, and widening supply deficits, according to a report released on Tuesday.
Motilal Oswal Financial Services Limited (MOFSL), in its latest Precious Metals Quarterly report, advised investors to buy silver on dips, highlighting trade tensions, strong investment inflows, and demand from electronics and renewable energy sectors as key drivers.
The metal has rallied 37 per cent year-to-date, supported by safe-haven demand and industrial usage. “After achieving earlier targets of Rs 1,11,111 and Rs 1,25,000, silver should move toward Rs 1,35,000 followed by Rs 1,50,000 on the domestic front, assuming the USD-INR exchange rate at 88.5,” the report said. On COMEX, silver could reach $45 and then $50.
MOFSL highlighted long-term support levels between Rs 1,04,000 and Rs 1,08,000 and recommended buying on dips over a 12–15 month horizon. The report noted that in 2025, silver correlated 81% with gold and 75% with copper, reinforcing its dual role as an investment and industrial metal.
Geopolitical tensions, US tariff uncertainties, and expectations of a 25 basis points rate cut in September strengthen the rally. The International Monetary Fund (IMF) revised global growth forecasts upward, while inflation remains near central bank targets, the brokerage added.
Industries will account for nearly 60 per cent of total silver demand in 2025. China’s GDP growth remains steady at 5 per cent, and PV module exports reached 127 GW in the first half of CY25, boosting industrial demand further.
Although jewellery demand may drop by 6 per cent this year, supply constraints continue, creating a fifth consecutive year of market deficit. Silver ETFs and ETPs drew significant inflows in 2025, with the Saudi Central Bank investing $40 million in silver-linked ETFs and Russia acquiring $535 million in silver for its reserves.
With investment and industrial demand both rising, MOFSL expects silver to maintain strong upward momentum, making it a key metal for both investors and industries in the near term.
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