Synopsis:
Motilal Oswal forecasts silver to reach Rs. 2.4 lakh/kg by 2026, which an upside of 46%, driven by a prolonged global supply deficit and strong industrial demand. Rising investor interest, especially via ETFs, reflects confidence amid silver’s dual industrial and safe-haven appeal.
Motilal Oswal expects silver prices to surge in the coming years, driven by tightening global supply and robust industrial demand. The brokerage forecasts domestic prices could reach Rs. 2.4 lakh/kg by 2026, which is 46% upside from the current levels with global prices strengthening to $70/oz by 2027.
Rising investor interest, particularly in silver ETFs, reflects confidence in silver’s dual role as an industrial metal and safe-haven asset. MCX silver futures have gained 156% over the past five years, risen 87% year-to-date, and increased 27% in the last month.
Bullish Silver Price Forecast
Motilal Oswal has projected a significant uptrend in silver prices, forecasting that domestic prices could reach around Rs. 2.4 lakh per kilogram by the end of 2026. Globally, the brokerage expects silver to trade near 75 dollars per ounce in 2026 and further strengthen to about 77 dollars per ounce by 2027. This bullish outlook reflects the combined effects of tightening supply and surging industrial demand across multiple sectors.
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Rising Industrial Demand
A key driver behind the rally is the persistent global supply deficit, which has continued for seven straight years and is likely to extend through 2025–26. On the demand side, industrial use now accounts for nearly 59% of global silver consumption, with robust demand coming from solar energy installations, electronics manufacturing, and the rapidly expanding electric vehicle industry.
From a trading perspective, the brokerage recommends using MCX silver futures during backwardation periods to capture near-term opportunities, while suggesting silver ETFs as a suitable vehicle for long-term holdings. Silver’s volatility which is about 1.7 times higher than gold, implies more pronounced short-term fluctuations but also greater long-run appreciation potential.
Motilal Oswal notes that this rally is fundamentally different from the speculative price spikes of 1980 and 2011. Silver’s dual role as both an industrial metal and a safe-haven asset is reinforcing its strength in the current environment. For Indian investors, a weakening rupee is expected to further enhance domestic returns, amplifying price gains even if international prices stabilise.
Investor participation is already reflecting growing confidence in the metal’s outlook. Silver ETF inflows in India have surged roughly 70% so far this year, highlighting increased interest from both retail and institutional segments seeking exposure to industrial metals with safe-haven attributes.
Written by Manideep Appana
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