Silver investors, get ready for liftoff. Leading brokerage Motilal Oswal has issued a blockbuster call: MCX silver prices set to climb to ₹3.2 lakh per kilogram by 2026. Detailed in their latest sector analysis, the forecast hinges on converging megatrends reshaping global metals demand.
At the forefront is the green revolution. Silver’s conductivity makes it indispensable for solar cells—each panel requires 20 grams. With global solar capacity doubling by 2026, demand surges. Electronics and automotive sectors follow suit, with EV battery tech incorporating more silver alloys.
Supply woes compound the rally. Mine production flatlines amid labor issues and depleting reserves, while recycling lags. The World Silver Survey anticipates multi-year deficits, pushing spot prices skyward. On MCX, rupee depreciation adds fuel, potentially accelerating the ₹3.2 lakh milestone.
Historical parallels abound: Silver hit ₹90,000 in 2011 amid similar dynamics. Today’s setup is stronger, with ETF inflows hitting records and investor interest spiking via apps like Groww and Zerodha. Motilal Oswal advises hedging strategies and multi-month holds.
Challenges exist—recession risks or Fed tapering—but resilience shines through. ‘Silver’s structural bull market is underway,’ the report concludes. For Indians battling inflation, this MCX play offers tangible protection and profit potential.