Silver may hit Rs 1.5 lakh per kg in 12 months on safe haven flows: Report

New Delhi, Sep 9 (PTI) Silver prices may climb as high as Rs 1.5 lakh per kg in the coming months, supported by robust industrial demand, a weakening dollar and safe-haven flows amid global uncertainties, according to a report by Motilal Oswal Financial Services.

In global markets, the white metal may test USD 50 per ounce level, according to the outlook.

In its quarterly outlook, the financial services company said silver has already delivered nearly 37 per cent returns year-to-date on the Multi Commodity Exchange (MCX), outperforming several asset classes.

The white metal has benefited from a mix of investment and industrial demand, geopolitical tensions and expectations of monetary policy easing across major economies.

"After achieving our earlier targets, we continue to believe silver remains poised for further upside.

"We expect prices to gradually move towards Rs 1,35,000 per kg in six months and then Rs 1,50,000 per kg in 12 months on the domestic front, assuming the rupee trades around 88.5 against the US dollar," the report noted.

In the international markets, Motilal Oswal Financial Services Ltd (MOFSL) expects that Comex silver futures may test levels of USD 45 per ounce initially and USD 50 per ounce in the next leg of the rally.

The report highlighted that silver's bullish outlook is being underpinned by multiple factors.

The US-based Silver Institute expects that industrial demand could be nearly 60 per cent of total production in 2025, with demand from green technologies such as solar power, electric vehicles and 5G infrastructure will continue to paint a positive picture for silver over the next few quarters, the report said.

At the same time, investment flows into exchange-traded products in 2025, while central bank interest in diversifying reserves are adding to the demand.

Russia recently became the first country to explicitly announce silver purchases for its state reserves, allocating USD 535 million over the next three years.

Meanwhile, Saudi Arabia's central bank has also been reported to have invested close to USD 40 million in silver-linked exchange-traded funds (ETFs) this year.

On the domestic front, India has imported more than 3,000 tonnes of silver in the first half of 2025, reflecting healthy appetite from both industry and investors. Silver ETFs in India have also witnessed a sharp rise in assets under management this year.

The outlook highlighted said the backdrop of a weaker dollar and expectations of interest rate cuts by the US Federal Reserve are further boosting sentiment.

"Post Jackson Hole symposium, a 25 basis points rate cut in September looks imminent. Lower rates alongside falling US yields are supportive for precious metals including silver," the report said.

However, it cautioned that after the sharp rally some profit-booking cannot be ruled out in the near term. "One can start accumulating silver from current levels down to dips of Rs 1,18,000-1,15,000 per kg," it suggested.

The US GDP and labour market are showing resilience, rising investment and industrial demand along with recovery expectations in China, and geopolitical risks are all combining to influence silver prices positively.

This is the fifth consecutive year of supply deficit in the market, which is a big boost for overall market sentiment.

Silver has gained 41.6 per cent year-to-date on Comex, while gold is up 34.6 per cent. In contrast, base metals like copper on the London Metals Exchange have seen relatively modest gains of 14 per cent, the report showed. PTI HG New Delhi, Sep 9 (PTI) Silver prices could climb to as high as Rs 1.5 lakh per kg in the coming months, supported by robust industrial demand, a weakening dollar and safe-haven flows amid global uncertainties, according to a report by Motilal Oswal Financial Services.

In its quarterly outlook, the financial services company said silver has already delivered nearly 37 per cent returns year-to-date on the Multi Commodity Exchange (MCX), outperforming several asset classes.

The white metal has benefitted from a mix of investment and industrial demand, geopolitical tensions and expectations of monetary policy easing across major economies.

"After achieving our earlier targets, we continue to believe silver remains poised for further upside.

"We expect prices to gradually move towards Rs 1,35,000 in six months and then Rs 1,50,000 per kg in 12 months on the domestic front, assuming the rupee trades around 88.5 against the US dollar," the report noted.

In the international markets, Motilal Oswal Financial Services Ltd (MOFSL) expects that comex silver futures to test levels of USD 45 per ounce initially and USD 50 per ounce in the next leg of the rally.

The report highlighted that silver's bullish outlook is being underpinned by multiple factors.

The US-based Silver Institute expects that industrial demand could be nearly 60 per cent of total production in 2025, with demand from green technologies such as solar power, electric vehicles and 5G infrastructure will continue to paint a positive picture for silver over the next few quarters, the report said.

At the same time, investment flows into exchange-traded products in 2025, while central bank interest in diversifying reserves are adding to the demand.

Russia recently became the first country to explicitly announce silver purchases for its state reserves, allocating USD 535 million over the next three years.

Meanwhile, Saudi Arabia's central bank has also been reported to have invested close to USD 40 million in silver-linked exchange-traded funds (ETFs) this year.

On the domestic front, India has imported more than 3,000 tonnes of silver in the first half of 2025, reflecting healthy appetite from both industry and investors. Silver ETFs in India have also witnessed a sharp rise in assets under management this year.

The outlook highlighted said the backdrop of a weaker dollar and expectations of interest rate cuts by the US Federal Reserve are further boosting sentiment.

"Post Jackson Hole symposium, a 25 basis points rate cut in September looks imminent. Lower rates alongside falling US yields are supportive for precious metals including silver," the report said.

However, it cautioned that after the sharp rally some profit-booking cannot be ruled out in the near term. "One can start accumulating silver from current levels down to dips of Rs 1,18,000-1,15,000 per kg," it suggested.

The US GDP and labour market are showing resilience, rising investment and industrial demand along with recovery expectations in China, and geopolitical risks are all combining to influence silver prices positively.

This is the fifth consecutive year of supply deficit in the market, which is a big boost for overall market sentiment.

Silver has gained 41.6 per cent year-to-date on Comex, while gold is up 34.6 per cent. In contrast, base metals like copper on the London Metals Exchange have seen relatively modest gains of 14 per cent, the report showed. PTI HG HG MR MR