Silver price may touch 1 lakh: Here's when this could happen. Should you invest?

Silver price: Silver traded at ₹81,313 per kg on April 8, while gold was at ₹70,850 per 10 gram. Why silver may touch ₹1 lakh and when?

The price of silver has been rising for some time owing to economic data points, geopolitical tensions and some market-specific dynamics. Last year, prices of silver advanced 7.19%, while gold gained 13% during the year. On a year-to-date basis, silver gained more than 11% till now while gold rallied nearly 15%. Silver traded at ₹81,313 per kg on April 8, while gold was at ₹70,850 per 10 gram.

Silver prices: On the white metal, brokerage Motilal Oswal Financial Services said that they continue to be strongly positive over the next few months. (Reuters)

What next for silver?

On the white metal, brokerage Motilal Oswal Financial Services said that they continue to be strongly positive over the next few months. The brokerage noted, “We advise to be invested in silver and keep adding on dips towards ₹75,000 for a medium to long term upside towards ₹92,000 followed by ₹1 lakh.

Why would silver rise as per Motilal Oswal?

As per Motilal Oswal Financial Services, geopolitical tensions have increased risk premium in the market since 2020. In 2022, the Russia–Ukraine war, last year the conflict between Israel and Hamas and other tensions as well as geopolitical uncertainty, has increased market volatility and pushed demand for silver as a safe investment. Silver has also benefited from robust industrial demand in sectors such as electronics, solar energy and healthcare.

“The implications for silver are that increasing solar PV demand over the next five years and beyond is unlikely to be matched by an increase in supply. A more than doubling of solar PV capacity by 2028 should translate to more than twice the PV demand for silver. The annual global supply of silver has been relatively unchanged over the past 10 years, as primary silver deposits are hard to find. In the automotive industry, greater use of electronic components and investment in battery charging infrastructure will continue supporting silver offtake,” Motilal Oswal Financial Services said.