Silver prices today: White metal hit all-time high: Can it rise to Rs 2.5 lakh soon?

Silver has been flying higher lately, with the white metal hitting Rs 1.51 lakh per kg on Tuesday, September 30. Silver has topped Rs 1.5 lakh per kg mark for the first time as the bull in the precious metal continues, supported by positive global cues and strong industrial demand. Even in the global arena, silver is the performing commodity in September, rising over 18 per cent.

According to the market experts, silver owns dual properties of both a precious metal and an industrial commodity which have triggered a sharp rise in its demand. Major industries including electric vehicles, solar energy and electronics continue to build long-term consumption, while investors have increased allocations amid global uncertainty.

“Geo-political tensions and Trump’s tariff threats are boosting silver’s safe haven appeal. US Yields have shown some recovery, however Dollar index witnessed significant fall and is hovering around 98. US GDP and labour market are showing resilience , supporting industrial metals including Silver,” said Motilal Oswal Wealth Management in its recent note.

According to Axis Securities, three major factors are currently working in the favour of silver prices:

• Monetary Policy: Silver doesn't earn interest or pay dividends, so it looks more attractive to investors when interest rates are low or even negative.
• US Dollar: Silver is priced in US dollars, so when the dollar weakens, silver tends to become relatively cheaper for buyers using other currencies, which usually increases demand and pushes silver prices up.
• Industrial Demand: Over half of total silver demand now comes from industrial uses. Silver has extensive industrial uses, especially in sectors like electronics and solar energy.  

Silver, with 38 per cent return on a year-to-date basis (YTD) basis outperformed gold in percentage terms on, reflecting strong sentiment across commodities. Brokerage firms continued to remain positive on silver and suggested to buy the dips, with some analysts suggesting it to hit Rs 2.5 lakh per kg mark, hinting another 65 per cent rally in the white metal.

2025 is expected to be the fifth consecutive year where silver demand outstrips supply, leading to a supply deficit. Silver offers dual exposur of safe-haven and industrial growth such as solar, electronics and more, said Axis Securities. “We expect Silver to remain in range of 40$-42$ per ounce in this year,” it added.

Motilal Oswal continues to maintain a positive view on Silver on a medium to long term perspective as it believes that white metal is poised for further upside. Long term support is placed near Rs 1,04,000–1,08,000.

“Buying on dips is recommended from a 12-15 month perspective. After a sharp rally some profit booking is warranted, one can start accumulating from current levels till the dips of Rs 1,18,000 and Rs 1,15,000 is suggested for targets of Rs 1,35,000 followed by Rs 1,50,000 on domestic front,” said the brokerage firm.

Gold’s 60 per cent rally since January 2024 is impressive, but silver is where the real upside lies. Historically, when gold runs, silver goes ballistic. With the gold-to-silver ratio stretched at 87:1 versus its 63:1 average, silver is poised for an explosive breakout, said Sourav Choudhary, Managing Director at Raghunath Capital.

A simple mean reversion signals more than 40 per cent gains, but if momentum drives an overshoot—as it often does—silver could easily multiply fourfold from here. It should be 40 per cent soon to balance old equations. If the momentum continues, silver can rise to Rs 2.5 lakh per kg in 6 months, he added.