Silver Outlook 2025: Motilal Oswal Recommends Buying on Dips, Prices May Soar to ₹1.50 Lakh Per Kg

Silver has once again captured investors’ attention, with leading brokerage firm Motilal Oswal advising buyers to accumulate the precious metal during price corrections. According to the firm’s latest Precious Metals Quarterly Report, silver prices could surge to ₹1.35 lakh–₹1.50 lakh per kilogram in India over the next 12–15 months, supported by strong industrial demand, growing investor interest, and persistent supply shortages.

Industrial Demand Driving Silver Higher

The most significant factor behind silver’s bullish outlook is its increasing industrial usage. Today, nearly 60% of global silver consumption comes from industrial applications, particularly in clean energy and advanced technology.

• Silver is a crucial component in solar energy panels, electric vehicles (EVs), 5G technology, and electronics manufacturing.

• China has emerged as a key driver of this demand. In the first half of 2025 alone, China exported 127 gigawatts of photovoltaic (PV) modules, significantly boosting global silver consumption.

This steady rise in industrial demand is expected to provide a strong floor for silver prices in the years ahead.

Investor Confidence Adds Fuel to the Rally

Apart from industrial consumption, silver has also seen robust investment inflows worldwide. Exchange-Traded Funds (ETFs) and silver-focused mutual funds have recorded strong subscriptions in recent months.

• Saudi Arabia’s central bank recently invested $40 million in silver-linked ETFs.

• Russia has allocated $535 million to its sovereign silver reserves over the past three years.

• In India, silver imports surpassed 3,000 tonnes in the first half of 2025, highlighting strong domestic demand.

These developments underscore silver’s growing appeal as a strategic investment asset.

Persistent Supply Shortages

Motilal Oswal’s report also points out that silver is now in a structural supply deficit for the fifth consecutive year. Global mine output has been unable to keep pace with rising demand, creating an imbalance that is steadily pushing prices higher.

With supply constraints expected to continue, this shortage will likely remain a critical factor in supporting silver prices through 2025 and beyond.

Supportive Global Environment

It’s not just supply and demand dynamics that are helping silver. Broader global economic and geopolitical factors are also boosting the precious metal’s status as a safe-haven asset.

• Heightened geopolitical tensions

• A weakening US dollar

• Expectations of interest rate cuts by the US Federal Reserve

All these factors make silver more attractive to both institutional and retail investors, who are increasingly diversifying into the metal as a hedge against volatility.

Silver Price Forecast: How High Can It Go?

Currently, silver is trading at around ₹1,30,000 per kilogram in India, reflecting a sharp rally of nearly ₹3,000 in a single session. Over the past year, silver has delivered an impressive 45% return, with prices already touching ₹1.26 lakh per kilogram earlier in 2025.

Looking ahead:

• In India, silver could rise to ₹1.35 lakh–₹1.50 lakh/kg within the next year.

• On the global stage, COMEX silver is expected to trade in the range of $45–$50 per ounce.

Even though jewelry demand remains relatively subdued, rising industrial usage—particularly in green technologies—is expected to keep the momentum strong.

Key Takeaways for Investors

• Buy on dips: Corrections may present strong entry opportunities.

• Industrial demand is the backbone: Solar, EVs, and electronics will keep silver relevant.

• Global flows matter: Central banks and ETFs are adding stability to silver prices.

• Supply crunch continues: Limited production will fuel further upside.

• Potential upside: ₹1.50 lakh/kg in India and $50/oz on COMEX within the next 12–15 months.

Final Word

Motilal Oswal’s outlook for silver remains decisively bullish, backed by a combination of industrial growth, investment interest, and structural supply shortages. For investors looking to diversify their portfolio or hedge against global uncertainties, silver appears poised to shine brighter in 2025 and beyond.