Globally, spot silver was relatively flat at $53.07 per ounce, after touching an all-time high of $53.60 an ounce earlier this week. The rally has been supported by gold’s upward momentum and a short squeeze in the spot market, highlighting tight physical availability.
Pune-based financial mentor Kirang Gandhi noted, “When silver goes out of stock and even paying a premium can’t get you an ounce, it’s not a metal shortage — it’s a mindset shortage. Smart investors accumulate value in silence, not in hype.”
Long-term fundamentals are also underpinning the surge.
Motilal Oswal Financial Services (MOFSL) highlighted in its report, “Silver 2030 – The Unprecedented Rise”, that silver is undergoing a structural revaluation driven by industrial acceleration and sustained investment demand.
According to the report, global silver supply stands at around 31,000 tonnes, while demand exceeds 35,700 tonnes, creating a deficit of nearly 118 million ounces—the fifth consecutive year of a structural shortfall.
Industrial demand, particularly from the solar, electric vehicle, and electronics sectors, is at all-time high levels. The solar photovoltaic industry alone consumes over 200 million ounces annually, projected to rise to 450 million ounces by 2030.
Each electric vehicle uses 25–50 grams of silver, and global EV production is expected to reach 14 million units in 2025.
MOFSL forecasts silver prices to consolidate in the $50–$55 an ounce range, with potential to touch $75 per ounce by 2026 and $77 per ounce by 2027 on COMEX. On the domestic front, silver could reach ₹2.40 lakh per kilogram by end-2026 and ₹2.46 lakh by 2027, assuming dollar-rupee levels near 90–92.
The scarcity of physical silver is evident in both global and domestic markets. LBMA vault holdings have dropped 31% since 2020, from 35,667 tonnes to 24,581 tonnes. In India, silver ETFs have surged 69% year-to-date, with August alone seeing a 180% increase in monthly inflows.