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After 18 per cent fall in prices in the last two weeks, investors looking for earnings outside the stock market may consider buying fresh silver. Despite the recent weakness, analysts say there is still scope for silver to deliver returns of up to 50 per cent over the next year. Manav Modi, Research Analyst, Motilal Oswal Financial, says that we believe that silver prices will remain stable between $ 50-55 an ounce in the next few months, and there is a possibility of some profit booking from recent high levels. Ultimately it may reach $75 per ounce by the end of 2026. If the dollar remains around 90, domestic prices may reach Rs 240,000 per kg.

How much did silver fall below the record level?

At the international level, silver prices have fallen 10.9 per cent to $ 48.59 from a high of $ 54.45 per ounce on October 16, while domestic prices have fallen 18 per cent to Rs 149,500 from Rs 182,500 per kg on October 14. Improved risk appetite and reduced demand for safe havens amid progress in global trade talks have reduced investor interest in the precious metal, resulting in a fall in silver prices. This decline has come after the huge rally in the beginning of this month, due to which traders have booked profits. In the last one year, silver has given returns of 44 percent in dollar terms and 55.72 percent in rupee terms.

Will silver prices go down further?

Now the biggest question is that how much decline can be seen in silver? In response, experts say that considering the supply shortage and industrial demand, silver prices may remain stable between 50 and 55 dollars an ounce. Analysts say that supply shortage and increasing industrial demand for green energy and electric vehicles are supporting the long-term outlook of silver. Anil Ghelani, Passive Investment and Product Head, DSP Mutual Fund, says in the ET report that the supply of silver is limited. There has been a continuous reduction in supply in recent years. In 2025, the projected shortage is 118 million ounces, which is a strong reason for rising prices.

What do experts believe?

Ghelani explains that as the world is rapidly moving towards green energy and EV, the use of silver will increase. Analysts also believe that supply constraints such as stagnant mining and limited recycling have further tightened the market, making the prospects for the white metal brighter in the medium term. After the recent rally in prices, fund managers believe investors should add to the downside but limit investments to 3-7 per cent of their total portfolio. Viral Bhatt, founder of Money Mantra, says in the ET report that after this tremendous rise, do not make big lump sum purchases and invest more than necessary, because historically silver has been a volatile asset and there is a risk of short-term decline in it.