After a sharp 170 per cent rally in MCX silver prices last year, domestic brokerage firm Motilal Oswal believes the white metal still has enough strength to continue its record-breaking run in 2026.
Silver emerged as the best-performing precious metal in 2025, beating not just gold but also most major asset classes.
In its latest report, Motilal Oswal said the strong rise in silver and gold prices was driven by a mix of global factors such as rising geopolitical tensions, trade uncertainties, easier monetary policies, strong inflows into exchange-traded funds, supply constraints and growing demand for safe-haven assets.
Motilal Oswal has pegged its 2026 target for MCX silver at Rs 3.20 lakh per kilogram, with a risk-negation level set at Rs 1.40 lakh.
Based on the current price of around Rs 2.52 lakh, this suggests a potential upside of nearly 27 per cent.
A steady decline in exchange inventories also added fuel to the rally. The brokerage noted that its earlier price targets were achieved much faster than expected.
At the beginning of 2025, it had projected gold to reach Rs 84,000 and silver to hit Rs 1,10,000 by the end of the year.
However, gold touched Rs 84,000 in the first quarter itself and later surged to a record high of Rs 1,40,465.
Silver crossed Rs 88,000 by the second quarter and went on to hit an all-time high of Rs 2,54,000, more than doubling the brokerage’s initial estimate.
Motilal Oswal said silver clearly outperformed gold due to its unique dual role as both a precious metal and an industrial metal.
While global uncertainty boosted its safe-haven appeal, rising industrial usage gave silver an additional push.
The brokerage pointed out that industrial demand for silver reached its second-highest level on record in 2025, supported by rapid growth in solar power installations, electric vehicles, electrification and higher investments in power grid infrastructure.
This strong demand kept the silver market in a structural deficit for the fifth straight year, with consumption consistently exceeding supply.
According to the report, this imbalance led to brief periods of backwardation in prices, a rare situation that signals tight physical availability in the market.
