MCX silver may hit Rs 3.2 lakh in 2026: Motilal Oswal

Domestic brokerage firm Motilal Oswal forecasts continued momentum for silver prices in 2026, following an exceptional 170% surge in MCX silver prices during the previous year.

Silver outperformed all precious metals and most major asset classes in 2025, establishing itself as a standout performer. Analysts attribute silver and gold’s price appreciation to multiple global drivers including geopolitical instability, trade uncertainties, accommodative monetary policies, robust ETF inflows, supply limitations, and heightened demand for safe-haven investments.

Motilal Oswal’s 2026 price target for MCX silver stands at Rs 3.20 lakh per kilogram, with a downside protection threshold of Rs 1.40 lakh. This projection implies a potential 27% increase from current levels of approximately Rs 2.52 lakh.

The brokerage noted that dwindling exchange inventories accelerated the rally, with previous price targets being surpassed significantly ahead of schedule. Initial 2025 projections of Rs 84,000 for gold and Rs 1,10,000 for silver were dramatically exceeded—gold reached Rs 84,000 in Q1 before climbing to a historic Rs 1,40,465, while silver crossed Rs 88,000 in Q2 and eventually set a new record of Rs 2,54,000.

Silver’s dual identity as both a precious and industrial metal contributed to its exceptional performance. Beyond its safe-haven status, industrial consumption reached near-record levels in 2025, fueled by expanding solar energy infrastructure, electric vehicle production, and power grid investments. This sustained industrial appetite has maintained a structural market deficit for five consecutive years, with demand persistently outstripping supply.

The supply-demand imbalance briefly triggered backwardation in pricing—an uncommon market condition signaling physical scarcity—according to the report.

(With inputs from IANS)