Silver on Fire: Analyst Predicts ₹1,50,000 per Kg Price Target Amid Global Supply Crunch

Silver on Fire: Analyst Sets Price Target at ₹1,50,000 per Kg Amid Supply Crunch

The silver market is making headlines again as leading analysts predict a sharp rally that could send prices soaring to ₹1,50,000 per kilogram over the coming months.

indian market silver

Silver on Fire: Analyst Predicts ₹1,50,000 per Kg Price

With global demand strengthening and supply bottlenecks tightening, silver is emerging as one of the most closely watched commodities of 2025. Investors, traders, and even small household buyers in India are paying attention, wondering whether now is the right time to increase their holdings in the white metal.

Silver’s Dual Role: Precious Metal and Industrial Commodity

Unlike gold, which is primarily valued for its status as a safe-haven asset, silver plays a dual role in the market.

It is both a precious store of value and a critical industrial metal. Silver is used extensively in solar panels, electric vehicles, electronics, medical devices, and even green energy technologies. As the world moves towards cleaner energy and faster digital adoption, demand for silver is expected to rise significantly.

This unique dual demand is one of the main reasons analysts believe silver could outperform gold in the near future. While investors turn to silver during times of economic and geopolitical uncertainty, its industrial usage ensures that even in stable times, consumption continues to climb.

Global Supply Crunch

The most significant driver behind the latest bullish target is the supply crunch. Silver production has struggled to keep pace with demand. Major mining regions in Latin America, including Mexico and Peru, have faced challenges ranging from stricter environmental regulations to higher labor costs and operational disruptions.

At the same time, recycling of silver scrap has not been able to fill the gap. According to data from global precious metals councils, global silver supply fell short of demand by a wide margin in 2024, and the deficit looks set to deepen in 2025.

This imbalance is what fuels the projection of prices heading towards ₹1,50,000 per kg in India, where silver is not just an investment but also a cultural necessity for weddings, festivals, and household savings.

Indian Market Sentiment

India remains one of the largest consumers of silver worldwide.

Whether it is coins, jewellery, utensils, or bars, Indian households buy silver both for cultural reasons and as a hedge against inflation.

In 2024, silver imports into India surged after prices dipped temporarily, as value-conscious buyers rushed to stock up. This strong domestic demand is expected to add further upward pressure on prices in 2025.

Analysts believe that if industrial usage continues to grow globally, Indian demand during festive seasons like Diwali and Akshaya Tritiya may trigger periodic price spikes.

Key Drivers of Silver’s Bullish Outlook

• Green energy transition: Silver is essential in photovoltaic cells for solar panels, a sector witnessing rapid global expansion.

• Electric vehicles: EV batteries and semiconductors require silver, increasing industrial demand.

• Safe-haven investment: Investors are shifting capital toward silver as global uncertainty persists in currency markets and equities.

• Weak supply growth: Mining challenges and slow recycling are restricting overall supply.

• Central bank interest: Although not as aggressive as with gold, several central banks consider silver-backed instruments as part of diversified reserves.

Analyst Predictions and Market Forecast

While analysts set their bold target of ₹1,50,000 per kg, they also caution that volatility will remain high.

Silver has historically experienced sharp rallies followed by corrections. In 2011, for example, global silver prices spiked dramatically before falling back.

However, unlike earlier cycles, 2025’s silver rally seems backed by stronger fundamentals. Renewable energy commitments worldwide, government incentives for EVs, and increasing geopolitical tensions make silver both a strategic industrial resource and a sought-after safe haven.

Market watchers suggest that if prices do cross ₹1,50,000, they could open doors to fresh investments but may also lead to temporary slowdowns in consumer buying, especially from small households that seek affordability.

Should Investors Buy Silver Now?

For retail investors in India, silver presents both opportunities and risks. Analysts suggest a diversified approach—combining small amounts of physical silver with exposure through exchange-traded funds (ETFs) or sovereign bonds where available. Physical silver has cultural value, but its storage and purity verification can pose challenges.

ETFs and digital silver platforms offer convenience and transparency.

Traders see the short to medium-term outlook as highly positive. However, long-term investors are advised to proceed with caution and track both global supply chain developments and currency movements, particularly the strength of the US dollar, which directly impacts precious metal prices worldwide.

Conclusion

With industrial demand soaring and supply tightening, silver is firmly in the spotlight for 2025. The projection of ₹1,50,000 per kg may sound ambitious, but underlying fundamentals justify optimism.

Whether it will sustain those peaks depends on how mining supply shapes up and how much demand continues to grow from sectors like renewable energy and electric vehicles.