Buckle up, silver bugs: Motilal Oswal is doubling down on a massive rally, eyeing ₹3.2 lakh per kg on MCX by 2026. Their in-depth research dissects why the ‘poor man’s gold’ is morphing into a market darling, fueled by tech booms and economic flux.
Core to the thesis: Explosive industrial uptake. Solar energy’s thirst—projected at 15% CAGR—alone could gobble 25% more silver. Fold in AI data centers needing high-purity silver for cooling, and 5G rollouts, demand catapults. Investment demand, via bars and coins, rebounds post-COVID.
Macro factors seal the deal. Persistent inflation erodes fiat, driving safe-haven flows. Geopolitical flashpoints from Ukraine to the Middle East inflate premiums. India’s import duties, while a drag, spur domestic price sensitivity on MCX.
Quant models back it: With a 12-15% CAGR from current levels (~₹95,000), ₹3.2 lakh is within reach. Trading volumes on MCX hit all-time highs, liquidity robust. ‘Accumulate on dips,’ urges the brokerage, spotlighting options strategies for leveraged upside.
Downside hedges? Diversified portfolios mitigate swings. Yet, the stars align for silver’s decade-defining run. As Motilal Oswal puts it, ‘The silver surge is not if, but when.’ 2026 could be the year commodities rewrite the script.