Planning to sell silver? Emkay says price correction is temporary, cites these factors

Emkay Wealth Management is maintaining a positive outlook for silver despite recent softness in the precious metal's price. Emkay said the recent softening in silver prices is a short-term correction and expects the metal to recover to $52–53 an ounce in the near term. The firm projects further upside toward $58 and $62 an ounce, supported by strong technical levels at $48 an ounce, and additional support at $45.60 an ounce and $42 an ounce.

Sector demand remains robust and the firm remains optimistic about silver’s broader fundamentals. It points to rising industrial demand from sectors such as renewable energy and electronics, along with constrained supply, as factors that continue to support long-term price stability."

Given silver’s high volatility, Emkay recommends a tactical approach for fresh exposure. Emkay recommends that investors treat fresh exposure as tactical allocations through ETFs or FoFs over a six- to twelve-month horizon, with defined exit targets aligned to expected price movements.

Recent sector performance shows silver investments, especially ETFs and FoFs, have surpassed physical holdings, benefiting from both industrial trends and managed fund strategies. The silver market continues to attract interest amid the ongoing economic and policy uncertainties.

Silver traded at approximately $48.80 per ounce on Tuesday, following a short-lived decline attributed to profit booking and the relaxation of US–China trade restrictions on critical minerals.

Emkay notes that while an earlier Federal Reserve rate cut had lent support to precious metals, uncertainty over further policy easing has added to recent volatility. As of October 31, 2025, ICICI Prudential and Nippon India Silver ETFs recorded returns exceeding 50% over the previous year, outpacing the nearly 49% return for physical silver. Three- and six-month returns for these funds ranged from 34% to 56%, reflecting a strong rally.

The Nippon India Silver ETF leads the segment by assets under management (AUM) with ₹15,284 crore, followed by ICICI Prudential at ₹9,481 crore, while Silver Fund of Funds (FoFs) mirrored this trend with one-year returns of 49–50% and ICICI Prudential Silver ETF FoF managing ₹3,232 crore in assets. Emkay attributes the slight performance difference between ETFs and FoFs to fund-level expenses.