The sustainability of silver’s rally depends on whether demand drivers remain intact and whether supply responds meaningfully.
Business
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News1823-01-2026, 08:30

Silver Crosses Rs 3 Lakh/kg: Rally Drivers, Investment Strategy & Correction Outlook

  • Silver has surged past Rs 3 lakh per kg in India, driven by strong industrial demand from sectors like electronics, solar panels, and EVs, coupled with supply constraints.
  • Unlike gold, silver exhibits higher volatility with sharp rallies and corrections; its current outperformance is due to demand dynamics and speculative rotation.
  • The Rs 3 lakh mark is a psychological threshold, attracting attention but also increasing volatility and potential for profit-taking.
  • Sustainability of the rally depends on continued industrial demand and supply response, with long-term industrial trends supporting higher prices.
  • Experts advise younger investors to wait for a correction or use a staggered approach (e.g., SIP in ETFs) for entry, while long-term investors should consider rebalancing portfolios and avoiding aggressive buying at current elevated levels.

Why It Matters: Silver's surge past Rs 3 lakh/kg is driven by industrial demand and supply issues, but high volatility suggests caution for new investors.

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