Silver price outlook: Experts warn white metal could see sharp correction despite recent rebound

• What happened: Analysts say silver prices may face a steep correction, with some experts projecting a potential 75% fall from peak levels over the next two years.

• Why it matters now: Recent volatility in global markets, easing geopolitical tensions and a stronger US dollar are putting pressure on precious metals.

• What changes for people: Investors may need to reassess long-term strategies as silver’s industrial demand and price momentum show signs of slowing.

• Who is affected: Commodity traders, retail investors, jewellery buyers and industries dependent on silver such as solar and battery manufacturing.

Silver prices showed sharp volatility during Friday’s Asian trading session, opening lower before recovering some losses. On the MCX, silver dropped near ₹2,29,187 per kg before rebounding towards ₹2,48,897, while the COMEX silver rate briefly slipped to around $63.900 per ounce before stabilising.

Why silver prices are under pressure

Market experts attribute the recent decline to easing geopolitical tensions between the United States and Iran, which reduced safe-haven demand for precious metals. At the same time, a stronger US dollar index near 97.50 has made commodities priced in dollars more expensive for global buyers, weighing on prices.

Analysts say the recent uptick in prices may be temporary, driven by profit booking rather than strong bullish momentum.

Analysts call rebound a temporary bounce

Some strategists believe silver’s rally over the past year may have peaked. According to market observers, short-term recoveries could represent a technical rebound rather than the start of a fresh uptrend, with prices potentially forming lower highs before declining further.

They also point to changing industrial demand patterns, particularly in solar energy and battery technologies, where companies are exploring alternatives like copper to reduce costs.

Lessons from past silver cycles

Experts note that silver has historically experienced sharp corrections after strong rallies. Major price crashes followed peaks in 1980 and 2011, highlighting how speculative surges can reverse quickly when market sentiment shifts or margins rise.

Recent margin increases by global exchanges have also added pressure, signalling tighter liquidity conditions for traders.

How far could prices fall

Some analysts predict silver could eventually trade in the range of $25 to $30 per ounce if bearish trends continue. However, they caution that any decline is unlikely to be linear, with intermittent rebounds expected as investors react to global economic data and currency movements.

What investors should keep in mind

Financial experts emphasise that commodity markets remain highly sensitive to geopolitical developments, currency fluctuations and industrial demand shifts. Investors are advised to diversify portfolios and consult certified advisors before making major trading decisions.