Sell silver on any rise, bull run is over for now, says Kunal Shah of Nirmal Bang

The bull run in silver is over for now, and any rebound should be used to sell, not buy, says Kunal Shah, Head of Commodities Research at Nirmal Bang Securities.Shah said the metal has become virtually untradeable because of extreme and unpredictable swings. “This kind of volatility is something which nobody has seen. Every day there is a $10 movement which is absolutely unpredictable… this is not a trader’s market,” he said, citing sharp intraday moves on the Chicago Mercantile Exchange.

According to him, last week’s sharp fall has effectively ended the near-term upcycle. “Any asset class which corrects by 40% in a day… I think temporarily the bull run is definitely over in silver,” Shah said, adding that investors should avoid buying on dips. “Every rise from here should be used as a selling opportunity.”
On levels, Shah expects silver to test lower prices and does not see a quick return to recent highs. “On the downside, I see $65. On the upside, I see $90, maybe $95 at the most. The view is very clearly sell on rise,” he said, adding that this would translate to around ₹2 lakh or even lower on the Multi-Commodity Exchange of India.Also Read: Gold, silver price fall brings relief to jewellery trade after ‘unsustainable’ rally: GJEPC

He also flagged a key fundamental risk: weakening industrial demand. “Several solar producers in photovoltaic cells, instead of silver, have started using copper. The substitution effect has already started to come in,” Shah said, warning that demand destruction and high margin requirements will continue to cap any sharp rebound in prices.

For the entire interview, watch the accompanying video

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