Silver Price Forecast: Temporary Dip Offers Buying Opportunity as Brokerage Targets ₹1.90 Lakh Per Kilo

Despite the recent softness in the market, brokerage firm Emkay Wealth Management views the current decline in silver prices as a short-term correction, not a lasting trend. The firm has issued a highly bullish forecast, predicting that silver prices will soon regain momentum and could potentially surge to an impressive ₹1.90 lakh per kilogram in the Indian market.

Emkay's strong conviction in silver's future performance is based on a compelling blend of industrial demand growth, supply constraints, and technical market indicators. Investors are advised to consider this tactical entry point before the next major rally begins.

The Bullish Forecast: Why Prices are Set to Rally

Emkay Wealth Management suggests that silver is poised for a significant upward movement, driven by strong fundamentals and favorable technical patterns.

Price Targets:

• Immediate Term: The brokerage anticipates that prices could initially climb to $52-$53 per ounce globally.

• Medium-to-Long Term: The rally is then expected to continue, potentially pushing silver to trade between $58 and $62 per ounce.

• Indian Market Equivalent: If silver reaches the high-end target of $62 per ounce, it would represent an approximately 24% jump from the current level of around $50.18 per ounce. Translating this to the domestic market, this surge would push the price per kilogram up to an estimated ₹1,90,233.

Technical Support Levels:

Technically, Emkay identifies strong support for silver at $48 per ounce, with additional safety cushions positioned at $45.60 and $42 per ounce. This tiered support structure suggests limited downside risk compared to the anticipated potential upside.

Understanding the Recent Price Correction

As of the latest trading session (18 November 2025), silver was trading near $48.80 per ounce globally and had slipped by 1.22% to ₹1,53,415 per kilogram in the Indian market by mid-afternoon.

Emkay attributes the recent decline primarily to:

• Profit Booking: Investors taking profits off the table following earlier rallies.

• Trade Policy Changes: A recent easing of trade restrictions on critical minerals between the US and China, which temporarily impacts industrial metal sentiment.

• Monetary Uncertainty: The earlier rally in precious metals was supported by expectations of Federal Reserve interest rate cuts. Now, uncertainty regarding the pace and timing of future rate cuts has increased market volatility and put pressure on prices.

🚀 Digital Silver Instruments Outperforming Physical Assets

A significant trend highlighted by Emkay is the superior performance of exchange-traded products linked to silver:

Over the past three years, Silver ETFs (Exchange-Traded Funds) and Silver FoFs (Fund of Funds) have provided better returns than holding physical silver. For example, ICICI Prudential and Nippon India Silver ETFs delivered returns exceeding 50% over one year. The slight difference in returns between the ETFs/FoFs and physical silver is generally attributed to the fund-level management expenses.

These fund vehicles are attracting substantial investor capital:

• Nippon India Silver ETF: Manages the largest AUM at ₹15,284 crore.

• ICICI Prudential Silver ETF: Manages an AUM of ₹9,481 crore.

The strong returns across three and six-month periods (ranging from 34% to 56%) further demonstrate the robustness of the recent silver rally.

🏭 Strong Long-Term Foundation: Industrial Demand is Key

Emkay is strongly bullish on the long-term prospects of silver because its industrial demand narrative is exceptionally strong and structurally sound:

• Renewable Energy: Silver is a crucial component in solar panels (photovoltaics).

• Electronics: Essential in almost all modern electronic devices.

• Electric Vehicles (EVs): High usage in EV components due to its superior conductivity.

• Supply Constraints: Coupled with surging demand from these high-growth sectors, a persistent constraint on global silver supply is providing a powerful long-term floor for prices.

These combined factors of rising consumption and limited supply are creating a favorable structural imbalance that is expected to support and drive prices higher over the next few years.

🎯 Investment Strategy for Investors

Given the high volatility inherent in silver, Emkay advises investors to approach the market tactically:

• Investment Vehicle: Prioritize investing through ETFs or FoFs rather than physical silver for easier liquidity and tracking.

• Investment Horizon: Target a 6-to-12-month time frame for strategic investments.

• Exit Plan: Always establish a clear exit strategy based on pre-defined price targets to capitalize on the rally and mitigate risks from sudden market reversals.

This current price dip, according to Emkay, offers an opportune moment for investors to accumulate silver-linked assets ahead of the anticipated push towards the ₹1.90 lakh per kilogram mark.