Silver Price Forecast: Rs 1.5 Lakh Per Kg in 12 Months
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Silver Price Surge: Forecasts Predict Rs 1.5 Lakh/kg, USD 50/oz
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Motilal Oswal Financial Services projects significant gains for silver, driven by industrial demand, a weakening dollar, and geopolitical factors. Investors are taking note as silver outperforms other asset classes.
What’s Driving the Silver Rally?
Silver prices are experiencing a robust uptrend, fueled by a confluence of economic and geopolitical factors. According to a recent report by Motilal Oswal Financial Services, the white metal has already delivered year-to-date returns of nearly 37% on the Multi Commodity Exchange (MCX).
This outperformance is attributed to a blend of investment and industrial demand,heightened geopolitical tensions,and growing expectations of monetary policy easing across major economies. The Silver Institute anticipates that industrial demand will account for nearly 60% of total silver production by 2025, further solidifying its importance beyond a purely monetary asset.
Detailed Price Projections
Motilal Oswal’s quarterly outlook provides a phased projection for silver prices. They anticipate a gradual increase to Rs 1,35,000 per kg within six months, followed by a climb to Rs 1,50,000 per kg within twelve months. This forecast assumes an exchange rate of approximately 88.5 indian Rupees against the US Dollar.
Internationally, the firm expects Comex silver futures to initially test USD 45 per ounce, with a potential surge to USD 50 per ounce in the subsequent phase of the rally. These projections are based on a comprehensive analysis of global market trends and economic indicators.
| Market | 6-Month Forecast | 12-Month Forecast |
|---|---|---|
| Domestic (INR/kg) | Rs 1,35,000 | Rs 1,50,000 |
| International (USD/oz) | USD 45 | USD 50 |
The Role of Industrial Demand
The increasing demand for silver in industrial applications is a critical component of the bullish outlook. Silver’s exceptional conductivity makes it essential in the production of solar panels, electric vehicles, and various electronic components. As the world transitions towards renewable energy and electric mobility, the demand for silver is expected to rise significantly.
For example,the solar industry alone consumed 11.7 million ounces of silver in 2022, representing 13% of total silver demand, according to the Silver Institute’s World Silver Survey. This figure is projected to increase as solar energy adoption continues to grow globally.
Geopolitical Factors and Safe-Haven Demand
Global uncertainties and geopolitical tensions are also contributing to silver’s appeal as a safe-haven asset. In times of