Year-to-date, silver has seen significant gains, reflecting both its safe-haven appeal and industrial demand.
Unlike gold, silver tends to be more cyclical, responding sharply to global economic trends, which creates higher potential returns but also greater volatility, according to Manav Modi, Analyst – Precious Metals, Motilal Oswal Financial Services.“The recent halt of inflows into silver ETFs shows supply pressures in the market. Prices may continue to outperform in the near term, but investors should be prepared for fluctuations,” Modi added.
Geopolitical developments have further supported silver’s rally. Renewed US-China trade tensions, including China’s expanded rare-earth export controls and US tariff threats, have intensified uncertainty in global markets.Additionally, the ongoing US federal government shutdown, now in its 13th day, is adding to market volatility.
Monetary policy expectations also play a key role. Philadelphia Federal Reserve chief Anna Paulson noted that rising labor market risks strengthen the case for further US interest rate cuts, while traders await Fed Chair Jerome Powell’s address at the NABE annual meeting for fresh guidance. Lower interest rates tend to support non-yielding assets like silver and gold.
In India, silver remains a popular investment, particularly in Delhi, where both retail and institutional demand continue to rise.
Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), said, “Silver’s appeal is twofold: it acts as a hedge against economic uncertainty and offers industrial exposure. Investors should consider a disciplined, systematic approach to benefit from potential price movements while managing risk.”
Swapnil Aggarwal, Director at VSRK Capital, suggested that new investors gradually enter the market through smaller, staggered purchases, while existing investors may hold their positions to capitalise on ongoing momentum.
–With Reuters inputs
