Silver Outlook: Expert Firm Sees 15–20% Upside over 12–24 Months!!

Silver Outlook: Expert Firm Sees 15–20% Upside over 12–24 Months

Client Associates, a ₹50,000 crore asset manager, believes silver is poised for a strong 15–20% rally in the next 12–24 months. Their bullish stance is driven by silver’s rare “dual role” — a trusted store of value and a vital industrial metal powering solar, EVs, 5G, and semiconductors.

Key Takeaways from the Report

1. Structural Supply–Demand Deficit

The global silver market has faced four consecutive years of deficit, with demand consistently exceeding supply—by about 149 million ounces in 2024. Industrial demand rose by 3.6% year-on-year, recording its fourth straight year of growth.

2. Low Market Correlations

Silver exhibits a low correlation (0.21) with Indian equities (Sensex) and a moderate correlation (0.72) with gold, making it an effective diversifier across equity-heavy or gold-centric portfolios.

3. Defensive + Growth Hybrid

As Nitin Aggarwal puts it: “Silver is no longer just a precious metal—it is a modern asset class… offering a unique blend of opportunity and resilience.” With defensive credentials akin to gold and growth exposure via industrial relevance, silver may offer strategic alpha.

Broader Market Trends Supporting Bullishness

⚖️ Record Highs and Ongoing Rally

Silver prices have surged over 37% recently, touching around ₹1.13 lakh/kg on MCX. Analysts expect the price to continue its ascent with optimistic targets up to ₹1.23 lakh/kg in 2025.

⚙️ Industrial Demand & Green Technologies

Booming global demand for silver is fueled by clean-energy and advanced tech adoption. Solar panel production, EV manufacturing, and 5G infrastructure installation all contribute to the rise in silver usage.

🌐 Macro Drivers

A weakening US dollar, geopolitical tensions, and expectations of lower interest rates are boosting silver’s safe-haven appeal. Technical indicators and gold‑silver ratios also favor further upside potential.

Analyst Outlook & Price Targets

Analyst / Source	Forecasts & Targets
Client Associates	15–20% upside over next 12–24 months
Financial Analysts (Reliance, LKP, etc.)	₹1.10–₹1.23 lakh/kg in 2025
ET / Anand Rathi	$38.70–$41.50/oz ≈ ₹1.15–₹1.23 lakh/kg (18–20%)
MoneyWeek, Global Analysts

Strategic Considerations for Investors

• Allocation Approach: Silver can serve as both a growth engine and a portfolio hedge. A tactical allocation of 6–15%, depending on risk appetite, is often advised.

• Investment Vehicles: Investors may consider physical silver, ETFs/ETCs, or shares in silver mining companies — each offering different risk‑return profiles and RP‑tax implications.

• Volatility Risk: Known as the “devil’s metal,” silver is more volatile than gold. Short-term price swings can be sharp even as the long-term trend remains upward.

Final Thoughts

Silver’s unique positioning as a critical industrial metal and trusted value store keeps driving its relevance in a volatile global landscape. Backed by persistent supply deficits, rising demand from green-tech sectors, and supportive macro signals, it remains a compelling tactical play for investors.