After a remarkable 170% surge in MCX silver prices last year, brokerage firm Motilal Oswal predicts that the white metal still has the momentum to maintain its exceptional performance in 2026. Silver outshined gold and other major asset classes in 2025, emerging as the top-performing precious metal. Motilal Oswal attributes the surge in silver and gold prices to various global factors like geopolitical tensions, trade uncertainties, monetary policies, ETF inflows, supply constraints, and the rising demand for safe-haven assets.
Motilal Oswal has set a target of Rs 3.20 lakh per kilogram for MCX silver in 2026, with a risk-negation level at Rs 1.40 lakh. This target implies a potential upside of nearly 27% based on the current price of around Rs 2.52 lakh. The decline in exchange inventories has further fueled the rally, with the brokerage noting that its earlier price targets were surpassed quicker than anticipated.
In early 2025, Motilal Oswal had forecasted gold to reach Rs 84,000 and silver to hit Rs 1,10,000 by year-end. However, gold hit Rs 84,000 in the first quarter and later soared to a record high of Rs 1,40,465. Similarly, silver surpassed Rs 88,000 in the second quarter and peaked at an all-time high of Rs 2,54,000, more than doubling the brokerage’s initial estimate.
Motilal Oswal highlighted silver’s exceptional performance over gold due to its dual role as a precious and industrial metal. The metal’s safe-haven appeal was boosted by global uncertainty, while increased industrial usage provided an additional boost. The report emphasized that silver’s industrial demand in 2025 reached its second-highest level on record, driven by rapid growth in solar power installations, electric vehicles, electrification, and higher investments in power grid infrastructure. This sustained demand has kept the silver market in a structural deficit for the fifth consecutive year, with consumption consistently outpacing supply. The report also noted brief periods of backwardation in prices, indicating tight physical availability in the market.
MCX, Silver, Motilal Oswal, Gold, Precious Metal, ETF, Safe-Haven Assets, Industrial Metal, Solar Power, Electric Vehicles, Power Grid Infrastructure
