Silver likely to correct 8-10% before surging to $72 an ounce in a couple of years, says Ajay Kedia

Silver prices may see a near-term correction of 8-10% before heading for a strong rally towards $72 an ounce in the next couple of years, according to Ajay Kedia, Director of Kedia Commodities.“I’m very bullish on silver. Maybe we can see levels nearby $50 per ounce, but correction is expected in bullion. Particularly in silver, I’m expecting 8-10% correction, and that will make it more attractive to buy, targeting $72 per ounce in the next couple of years,” Kedia told CNBC-TV18.

Silver has already rallied more than 58% over the past year, making it one of the top-performing commodities. Kedia cautioned that investors should wait for a pause before entering fresh positions. “From here, maybe a corrective fall of 8-10% would be attractive for silver,” he said, adding that time correction was also likely.

While gold has remained steady, Kedia believes silver offers more long-term value. “For silver, I’m more bullish, because it’s a structural bull run. Demand from industry is continuing. The best barometer is the gold-silver ratio, which is currently around 82, and the long-term average is around 70. That gives me more confidence to buy and hold silver rather than gold,” he explained.On base metals, Kedia said the next leg of the commodity cycle will be driven by copper, zinc and aluminium, supported by easing oversupply and falling interest rates. He expects copper to remain the leader among base metals, projecting levels of $11,500-$12,000 on the LME and around ₹1,100-1,150 on MCX in the next year.

“Copper is the indicator of industry, and I am very bullish on it. If I had to choose metals from here, my first preference would be copper, then zinc, aluminium, and last would be lead,” he noted.

Watch accompanying video for entire conversation.