Following a significant decline in silver prices since January, experts see potential for a recovery in growth. Navneet Damani, Head of Commodity Research at Motilal Oswal's Financial Services, noted that the probability of further price increases for the metal remains, although reaching previous record levels may take time.
Damani suggested that due to the overall rise in precious metal prices, the price of silver in the domestic market could rise from approximately 2.4 lakh rupees to 3.2–3.25 lakh rupees. He emphasized that while positive growth is expected, there is a risk of repeating the exceptional price surge seen in January 2026, when prices reached 4–4.25 lakh rupees per kilogram.
In Damani's view, the initial surge in silver exceeded fundamental principles because it was driven by speculative activity. He added that ETF purchases also played a significant role in this jump. However, he believes that speculative growth is rarely sustainable without a change in demand. Therefore, he thinks that the ETF-driven dynamics observed previously will be difficult to replicate in the near future, suggesting that the next rise in silver will likely be more stable and cost-sensitive.
The 3.25 lakh rupee range is significant because Damani maintains a positive outlook on the international silver price, which stands at $90–$95 per ounce, equivalent to approximately 3.2–3.25 lakh rupees in the domestic market. This means that even if the metal does not immediately challenge its past high, it could increase significantly from current levels. He also hinted that the silver price could exceed this threshold and reach a maximum of 3.25–3.50 lakh rupees. For investors, this presents an opportunity for strategic accumulation rather than just a fast-growing market.
From Damani's perspective, gold is more important than just absolute. Although a 'parallel' rise in silver prices alongside gold's increase is expected, he clearly stated that the probability of gold price growth is higher. Nevertheless, he noted that this probability is even higher in the case of gold.