Silver may climb to Rs 3.25 lakh, but January peak looks distant: Navneet Damani

Silver may still have room to run, but investors hoping for a quick return to its January 2026 record highs may need to temper expectations. Navneet Damani, Head of Commodity Research at Motilal Oswal Financial Services, said the metal remains constructive from current levels, though the earlier surge was inflated by speculative excess that may not be easy to recreate.

Damani said silver could move from roughly Rs 2.4 lakh to Rs 3.2-3.25 lakh domestically, tracking the broader uptrend in precious metals. But he drew a clear distinction between a healthy upside and a repeat of the extraordinary rally that had briefly pushed prices to Rs 4 lakh-Rs 4.25 lakh per kg in January 2026.

Speculative spike, not a new base

According to Damani, the earlier move in silver overshot fundamentals. “It moved beyond that. There was a lot of froth, which was a lot of speculative activity,” he said, adding that ETF buying also played a major role in the spike.

That matters because speculative rallies can be sharp, but they are rarely durable without a structural demand shift. In Damani’s assessment, the kind of ETF-led momentum seen earlier is “hard to replicate in the near future,” suggesting that silver’s next leg higher is likely to be steadier and more valuation-sensitive.

Why Rs 3.25 lakh is the key zone

Damani said he remains positive on silver up to the equivalent of $90-95 per ounce internationally, which translates to about Rs 3.2-3.25 lakh in the domestic market. That implies meaningful upside from current levels, even if the metal does not immediately challenge its previous peak.

He also indicated that silver could stretch somewhat beyond that range, with “three twenty-five, three fifty… at best” emerging as the likely upper band. For investors, that frames silver as a tactical accumulation story rather than a runaway breakout trade.

Gold still looks stronger

The bigger takeaway from Damani’s outlook is relative, not just absolute. While silver is expected to move “in tandem” as gold advances, he was unequivocal that gold’s upside appears stronger. “However, for gold it is beyond that,” he said, underscoring that gold may be better placed to surpass prior highs over the medium term.

The broader backdrop from the discussion supports that view. With festive demand approaching and precious metals still benefiting from a supportive macro setup, both metals remain on investors’ radar. But if Damani’s thesis holds, silver’s rally may be real without being euphoric, while gold could remain the more compelling leadership trade in the precious metals basket.