Will a breakout above $60 spark the next leg of global silver rally?
Mumbai: As silver hovers slightly below the historical hurdle of $60 per ounce, investors and traders are once again building bets on expectations of a breakout.
The white metal, which has been among the best performers across asset classes in 2025, has nearly doubled this year. However, analysts believe there is more to come and want investors to have a 10-15% allocation to precious metals. Silver should outdo gold in that allocation basket, they have argued.
“The momentum and rally in silver is just half way through with the balance likely to happen as we approach 2026. We have a positive bias on silver from a 6-12 month perspective, and the pace of rally in the Comex will rise as silver sustains above $54 per ounce,” says Navneet Damani, Senior group vice president, Motilal Oswal financial services.
Damani believes silver prices could hit $75-80 per ounce on the Comex and ₹2.25- ₹2.4 lakh per kg in rupee terms. However there will be corrections and he asks those who have missed out on the rally to buy on dips at a 3% correction spread over four tranches. Analysts believe the trend for the white silver is upwards, over the short to medium term.
“A sustained close above the $54 mark will confirm a fresh breakout. The pattern suggests that silver has room to add roughly eight to nine dollars from the breakout point which opens the path towards levels of $63-64/ounce, in the near term says,” Apurva Sheth, head of Market Perspectives and Research, SAMCO Securities.
Almost $60/Ounce: Analysts believe there is more to come, suggest investors buy on dips, have a 10-15% allocation to precious metals
In rupee terms over the last one year, silver has returned 98.6%, while in dollar terms it has gained 87.44%. In the last one month, alone the white metal has gained 21.64% in rupee terms and 24.52% in dollar terms. “Industries like electronics, solar panels and automotive are using more silver, while investment demand has also increased, which tightens supply,” says Satish Dondapati, fund manager, Kotak Mutual Fund. He points out on the supply side several structural constraints are contributing to the shortage of which mining has slowed due to lower ore quality, higher costs and delays in new projects, while limited exploration of new reserves is adding to the shortage. Analysts also point out that the huge investment demand from return hungry investors chasing the white metal over the last one year has also added to tightening supply pushing up prices, as silver bought using the ETF route lies in vaults without any industrial use.
Wealth managers are, however, asking retail investors not to go overboard on silver given its volatility and after prices have doubled in rupee terms in this calendar year.
“For exposures taken as a tactical call, investors can look to take profits partially. However they should maintain a strategic allocation of 10-15% to precious metals with a slight overweight on silver,” says Nirav Karkera, head of Research, Fisdcom.