Motilal Oswal recommends buying silver on dips: Here’s why prices could climb further

Motilal Oswal’s latest Precious Metals Quarterly report recommends investors buy silver on dips, citing a combination of rising industrial demand, strong investment inflows, and a persistent supply deficit as key drivers for further price appreciation.The report highlights that industrial demand now accounts for nearly 60% of total silver usage, with growing applications in solar energy, electric vehicles, 5G technology, and electronics.

China’s photovoltaic (PV) module exports, which reached 127 GW in H1 2025, are a major contributor to the rising industrial demand for silver.

Investment trends are also supporting prices. Silver ETFs and mutual funds have seen record inflows globally. Notably, Saudi Arabia’s central bank invested $40 million in silver-linked ETFs, while Russia allocated $535 million over three years to state silver reserves. In India, domestic silver imports surpassed 3,000 tonnes in first half of 2025, driving increased market activity.The report emphasises that silver continues to trade in a structural supply deficit, marking the fifth consecutive year of shortfalls.

This, combined with geopolitical tensions, a weakening US dollar, and expectations of US Federal Reserve rate cuts, enhances silver’s appeal as a safe-haven asset.

Motilal Oswal projects domestic silver prices to reach ₹1.35 lakh–₹1.50 lakh per kg, while Comex silver may trade between $45–$50 per ounce over the next 12–15 months.

“Rising investment demand alongside industrial usage, particularly in green technology, continues to support silver prices, even as jewellery demand remains muted,” the report stated.