Silver hits 14-year high; Motilal Oswal turns bullish, projects Rs 1.35–1.50 lakh range by 2026

Silver prices in India witnessed a sharp upswing on Tuesday (September 9), mirroring strong momentum in global markets. The domestic benchmark climbed to Rs 1.30 lakh per kg, marking an increase of Rs 3,000 from the previous session. For smaller denominations, 100 grams of silver was priced at Rs 13,000, higher by Rs 300. Globally, silver surged to a 14-year high, driven by expectations of aggressive US Federal Reserve rate cuts, a weaker dollar, and falling Treasury yields. These macroeconomic factors have boosted the appeal of silver as both a precious metal and a strategic industrial commodity.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), stressed silver’s dual role. “Beyond its value as a precious metal, silver has immense industrial relevance. Persistent supply deficits, shrinking inventories, and rising consumption in solar energy, electric vehicles, and electronics are bolstering demand,” she noted. Kamboj added that near-term price targets are now being set between Rs 1.35 lakh and Rs 1.50 lakh per kg.

From a technical standpoint, Rahul Kalantri, VP Commodities at Mehta Equities, pegged support for silver at Rs 1.23–Rs 1.24 lakh per kg and resistance at Rs 1.26–Rs 1.27 lakh per kg. He highlighted that silver has consistently outperformed gold over the last 12 months and even on a three-year basis, according to a recent Value Research (September 8, 2025) analysis. However, analysts continue to caution that silver’s sharp rallies often come with heightened volatility, unlike gold, which remains the more stable magnet for Indian investor inflows.

Motilal Oswal’s silver outlook

The most influential voice on silver’s prospects comes from Motilal Oswal’s Precious Metals Quarterly Report, which presents a distinctly bullish case. The brokerage recommends buying silver on dips, citing a confluence of factors: rising industrial demand, strong investment inflows, and persistent supply deficits.

The report points out that industrial usage now accounts for nearly 60% of global silver demand, with applications expanding rapidly in solar power, electric vehicles, 5G infrastructure, and advanced electronics. China’s role is particularly significant: its photovoltaic (PV) module exports reached 127 GW in the first half of 2025, fueling global silver consumption in solar applications.

Silver investment

On the investment side, silver continues to attract record inflows into ETFs and mutual funds. Notably, Saudi Arabia’s central bank allocated $40 million into silver-linked ETFs, while Russia committed $535 million over three years to build state silver reserves. India has also emerged as a strong demand driver, with silver imports exceeding 3,000 tonnes in H1 2025, significantly boosting market activity.

Motilal Oswal emphasises that silver is now entrenched in a structural supply deficit—the fifth consecutive year of shortages. This imbalance, coupled with geopolitical uncertainties, a softening US dollar, and expectations of Fed rate cuts, enhances silver’s profile as both a safe-haven asset and a growth-linked industrial commodity.

Looking ahead, the brokerage projects domestic silver prices to trade between Rs 1.35 lakh and Rs 1.50 lakh per kg, while Comex silver is expected to hover in the $45–$50 per ounce range over the next 12–15 months.

“Silver is increasingly supported by the dual engine of industrial demand and investment flows. Its critical role in green technologies ensures a strong structural case, even as jewellery demand remains relatively muted,” the report concludes.