Silver Set For BIG Rally: Can Prices Hit Rs 1.9 Lakh/ KG? Best Silver Investment Options Explained

Silver Price Outlook: Despite some short-term price correction, silver prices are likely to rally in the long-run and may see a strong momentum in 2026. The rising industrial demand from sectors like renewable energy and electronics, alongwith supply side bottlenecks may take silver prices close to Rs 1,90,000 per kilogram levels in the long-term, according to experts.

The silver prices may bounce back to the $52-$53 levels and move towards next target of $58-62 per ounce (which roughly translates to Rs 1.81 lakh-Rs 1.93 lakh/kilogram), as per Emkay Wealth Management report released on Tuesday, November 18.

"It advises that given the relatively higher volatility in silver prices, any further investments into silver may be taken as tactical positions with six months to 12 months of time horizon, with target levels for exit. It expects further strong support levels for silver exist at US $ 45.60 and US $ 42.00, in that order," added the brokerage in its press release.

Key Factors Impact Silver Rate in India

Silver prices in India edged lower on Tuesday, reflecting the broader weakness in precious metals amid fading expectations of a US Federal Reserve rate cut and easing trade restrictions between the US and China on critical minerals.

While the October rate cut had previously boosted investor interest in silver by making the metal more attractive, the sentiment has turned cautious ahead of the crucial US Fed meeting scheduled for December, keeping silver prices under pressure.

ETF vs FoF vs Real Metal

As investors interest around silver has increased over the past few months, many are evaluating the best option of silver investment. Silver ETFs have delivered a significant nearly 50% returns in one year. The silver investment instrument has surged nearly 34-56% over a duration of three to six months. Returns by silver funds also remained close to 49-50% over a duration of one years.

Silver ETF

Silver ETFs have delivered impressive returns, with ICICI Prudential and Nippon India Silver ETFs posting over 50% one-year gains, compared to around 49% for physical silver, according to Emkay Wealth as on Ocotber 31. Silver ETF leads the segment with an AUM of Rs 15,284 crore, followed by ICICI Prudential at Rs 9,481 crore.

Silver ETF FoF

Under this category, the ICICI Prudential Silver ETF FOF has given the maximum return. The fund has an AUM of Rs 3,232 crore, reflecting strong investor participation. The minor difference in fund performance versus ETFs stems from fund-level expenses.

Silver ETF vs Silver ETF FoF: What's The Difference?

Silver ETF and Silver ETF FoF both track silver price movement, and investors are required to make the purchase via Demat account. A silver ETF FoF is a direct way to invest through a demat, whereas, silver ETF FoF is an indirect investment option where a mutual fund buys silver ETFs.

Which Is The Best Option For Silver Investment?

Allocations to silver through instruments like ETFs or FoFs over a 6-12 month horizon may help investors unlock their valuations in the long-run. "Tactical allocations to silver through ETFs or FoFs over a 6-12month horizon, with defined targets to capture potential price appreciation," noted the brokerage in its report.