Buying silver on dips? Experts decode how much glitter to add to core portfolio as white metal shines

Silver’s rally shows no signs of slowing down. The precious metal is trending strongly in the commodity market and has once again posted a sharp rise of 5 per cent. In history, for the first time, silver has crossed the $90 level, creating a buzz across global markets.

In the domestic market, silver prices have crossed Rs 2.90 lakh per kg, marking an all-time high. The sharp and frequent price jumps have caught the attention of traders, investors, and industry experts alike.

Gold, too, is trading close to its historic high. However, the way silver prices are touching new records two to three times in a single day clearly shows that silver is not falling behind in the race to outperform gold. Even though there is still a gap between gold and silver prices, silver is refusing to cool off.

Add Zee Business as a Preferred Source

In this situation, investors are hopeful but also cautious. Many are asking the same question: Will gold and silver prices rise further, or is a correction coming? Experts are now sharing their views and advising investors on the right strategy in this fast-moving market.

Silver’s Explosive Rally: Price jumps that stunned the market

Silver’s recent price movement has been nothing short of shocking. The speed and scale of the rally have surprised even experienced market players.

Here are some key data points that show how strong the rally has been:

• Silver has become costlier by Rs 50,000 per kg in just 10 sessions
• Silver prices have jumped by $41 in the last 3 months
• Nearly Rs 1 lakh rise in one month
• Around a 7 per cent surge in one week
• Prices are up by more than 35 per cent in one month

These numbers clearly show why silver has become one of the most talked-about commodities right now.

Is a 15–20% correction in silver possible?

According to Deepak Soni, MD, Kartikey Bullion, investors should not ignore the risk of a correction.

He believes that a 15–20 per cent correction in silver can come at any time and traders should plan their moves with this in mind. However, he also says that such a correction does not mean inflation will increase further. Still, caution is necessary.

Soni advises investors to be mentally prepared for a 15–20 per cent fall at any level. At the same time, he points out that silver corrections usually do not last long.

“Silver’s correction generally lasts only one or two days,” he says. His suggested strategy for investors is “buy on every dip.”

He also adds that if market conditions turn favourable, silver prices could even come down to $60. However, at present, such conditions do not appear to be forming.

What will be the future trajectory of silver prices?

Tanya Rastogi, Director, Lala Jugal Kishore Jewellers, believes that while the rally looks strong, suggesting fresh buying at this stage is not easy.

She says she feels hesitant to recommend buying silver right now. However, she also admits that silver’s fundamentals are very strong.

According to her, the current rally is linked to the ongoing issues between the US Fed and former US President Donald Trump. A Section 232 ruling is expected, and if silver is included under it, the impact could be significant.

She explains that silver reacts strongly because its baseline demand is very strong and cannot be changed easily. Silver is used widely in industrial applications, electric vehicles (EVs), and solar panels, which means demand is expected to rise further and not fall.

Technically, she says silver may need to enter a consolidation zone at some point. However, strong support is likely to come from lower levels.

She also points out that in China, gold is currently selling at a $100 premium. In the silver market, sellers are fewer while buyers are more. Due to ongoing geopolitical tensions, supply is shrinking, which is further pushing up demand.

Are geopolitical tensions driving the silver rally?

According to Vikash Soni, L. Gopal Sons Jewellers, geopolitical tensions are the main reason behind the sharp rise in silver prices.

He says that while industrial and practical demand for silver is strong, the recent high volatility within just one month is mainly due to geopolitical factors rather than industrial demand.

Soni explains that many countries across the world are focusing on de-risking, strengthening their assets, and moving towards de-dollarisation. Last year, Prime Minister Narendra Modi also brought back 80–90 tonnes of gold from abroad. Similarly, many countries are converting their dollar holdings into metals.

Because of these factors, he believes that silver could even cross the $100 mark (century level) within a week.

What should investors do during this rally?

Mrin Agarwal, Founder, Finsafe, says gold and silver have given strong returns over the past few years. This is why many investors are putting money into gold and silver ETFs.

However, she warns that problems arise when a correction comes. Many investors then feel confused about whether they should stay invested or exit.

That is why she stresses that goal-based investment is extremely important, especially in a market as volatile as silver right now.