Silver Rate Eyes Rs 1.5 Lakh! Industrial Demand, Weak Dollar, Global Uncertainty To Fuel Rally; Time To Buy?

Silver price rally has shifted gears as the precious metal has seen a sharp surge in its valuation over the past few weeks. With multiple records shattered, silver rate in India may eye at a fresh level of Rs 1.5 lakh per kilogram in the coming months, noted brokerage Motilal Oswal in its report on Tuesday.

The massive surge in silver rates has come in the backdrop of its increased industrial demand, weak dollar valuation and persistent global uncertainty. Silver rates on Multi Commodity Exchange (MCX) traded to their record high mark of Rs 1.26 lakh per kg on Tuesday. The brokerage believe that the silver rates in India and world are likely to increase further in the coming months.

Silver Shinning Bright In 2025

Silver rates have increased by nearly 45% year to date (YTD) in 2025, noted Motilal Oswal in its report. As per the brokerage, silver showed 81% correlation with gold and 75% with copper in 2025 so far. The white metal has already outshined gold on The Commodity Exchange (Comex), indicates Motilal Oswal's analysis.

Silver Price Outlook

The brokerage believes that silver rates are likely to maintain their bullish momentum till the end of the year 2025. The prices of silver will now chase the Rs 1.5 lakh target in coming months.

"After achieving earlier targets of ₹1,11,111 and ₹1,25,000, silver is now expected to move towards ₹1,35,000 followed by ₹1,50,000 on the domestic front (assuming USDINR at 88.5). On COMEX, silver could test $45 followed by $50," noted Motilal Oswal in its report.

Is It Time To Buy Silver?

Investors can accumulate silver for long-term wealth creation. The brokerage recommends investors to opt for 'Buy on Dips' strategy for investment in silver. "Long-term support levels are placed near ₹1,04,000 - ₹1,08,000, with buying on dips recommended over a 12-15 month horizon," noted the brokerage in its report.

What's Fuelling Silver Price Rally?

A range of factors are driving the demand for silver in India and world. There are expectations of US Fed rate cuts in September. As a result, investors are diversifying their portfolio with investment in precious metals like silver and gold.

Persistent focus on green energy expansion and importance of silver in the industry has maintained its global demand. Additionally, multiple central banks are investing in silver over the past few months.

"China's GDP growth is steady at ~5%, and PV module exports reached 127 GW in H1'25, strengthening silver's industrial demand outlook," noted Motilal Oswal. The report also highlighted other contributing factors in silver pric rally like Saudi Central Bank's $40 million investment in silver-linked ETFs, and Russia's plans to purchase $535 million worth of silver for state reserves over three years.

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