Silver Price Crosses Rs 3 lakh: Should investors hold, book profits or switch to gold? Experts weigh in

Silver Prices: Today, white metal on the MCX crossed the Rs 3 lakh per kg mark, marking a historic milestone. The metal touched an all-time high of Rs 3,04,200 per kg on MCX. Experts believe that silver remains highly volatile in the market, and its demand is expected to increase further in the coming period.

At a time when silver is setting new records almost every day and has now moved into wave three after crossing the Rs 3 lakh level, a key question arises for investors: should they continue to hold silver, book profits, or switch to gold?

In a conversation with Zee Business’s Commodity Editor, Mrituenjay Kumar Jha, experts shared their views on what investors should do at this stage.

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Silver rally justified, but extreme volatility remains

Kishore Narne of Motilal Oswal said that when extraordinary times arrive, markets respond with extraordinary reactions. According to him, 95–99 per cent of the silver rally is fundamentally justified. However, he cautioned that the pace of silver’s rise is difficult to comprehend, and making short-term price comments can be risky.

He added that silver’s next target stands at Rs 3,20,000 per kg, which he believes could be achieved within the next two to three days.

Profit booking, hold or switch to gold?

Narne said that for long-term investors, this phase offers an opportunity to switch partially from silver to gold. However, he emphasised that investors should not exit either asset completely, as both silver and gold remain safe-haven investments. He recommended maintaining 15–35 per cent of the portfolio in safe assets.

He advised investors who are already holding silver to opt for partial profit booking while continuing to hold the remaining position. He also suggested bringing exposure back to the level of the original capital invested.

For those considering a fresh entry into silver at current levels, Narne warned that investors would be entering at a very high-risk zone. While silver remains strong from a long-term perspective, short-term volatility continues to be elevated and may be difficult for many investors to tolerate.

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What should silver investors do at current levels?

Narne said investors who are holding silver should consider booking partial profits at current levels. There is no need for a complete exit from silver at this stage. While momentum traders may continue to take aggressive positions, long-term and tactical investors should remain cautious.

Silver prices appear to be overstretched and are currently overvalued. Therefore, the profits booked from silver can be strategically moved into gold for better balance and stability in the portfolio.

Silver stays volatile, upside momentum intact

Commodity expert Kishore Roonwal, CEO, Anmol Silver, says that white metal is currently witnessing significant volatility in the market. From these levels, if prices see an upside of around 5–20 per cent, it could translate into a rise of nearly Rs 15,000–20,000 in absolute terms.

The Rs 3 lakh level appears to be a strong support zone for silver. At this stage, silver looks well-positioned for further upside, and the overall trend continues to indicate more strength ahead.

Currently, the precious metal is trading around Rs 3,01,806 per kg on MCX, whereas in the international market, silver is trading around $92.59 troy ounce.