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Key Points

Silver prices in India could surge to Rs 1.5 lakh per kilogram according to a new Motilal Oswal report. The metal is benefiting from both safe-haven demand amid trade tensions and strong industrial usage in electronics and renewable energy. The market is experiencing its fifth consecutive year of supply deficit while demand continues to grow. Investors are recommended to buy silver on dips with a 12-15 month investment horizon.

Key Points: Silver Prices May Hit Rs 1.5 Lakh per kg on Trade Tensions Demand

  • Silver shows 81% correlation with gold and 75% with copper
  • Industrial demand to account for 60% of total production in 2025
  • Market faces fifth consecutive year of supply deficit
  • Geopolitical tensions and US rate cuts support rally
2 min read

Silver to touch Rs 1.5 lakh per kg buoyed by trade tensions, industrial demand: Report

Motilal Oswal report predicts silver could reach Rs 1.5 lakh/kg driven by industrial demand, safe-haven buying, and a widening supply deficit.

"Silver is now expected to move towards Rs 1,35,000 followed by Rs 1,50,000 on the domestic front - Motilal Oswal Financial Services"

New Delhi, Sep 9

Silver prices in India may climb to as high as Rs 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.

"After achieving earlier targets of Rs 1,11,111 and Rs 1,25,000, silver is now expected to move towards Rs 1,35,000 followed by Rs 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 Rs 1,04,000 to Rs 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.

- IANS

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Reader Comments

R
Rohit P
Rs 1.5 lakh per kg? That's insane! But with trade tensions and industrial demand, it might actually happen. I remember when silver was around 40k just a few years back. Should have invested more then 😅
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Arjun K
While the projections look promising, I'm concerned about how this will affect small jewellery businesses. Silver jewellery is already becoming expensive for middle-class families. The 6% decline in jewellery demand mentioned in the article is worrying for traditional artisans.
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Sarah B
The renewable energy angle is particularly interesting. With India pushing for solar power expansion, silver demand from PV modules should continue growing. Smart move by investors to consider this industrial aspect alongside traditional safe-haven appeal.
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Michael C
The fifth consecutive year of supply deficit is what caught my attention. When demand outstrips supply for this long, prices have to go up. Might be time to diversify some gold investments into silver.
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Nisha Z
As someone who works in electronics manufacturing, I can confirm the rising silver demand. The conductivity properties make it irreplaceable in many components. This isn't just speculation - industrial needs are real and growing! 💻

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