Silver Prices Likely to See Short-Term Correction Post-Diwali, Long-Term Outlook Remains Bullish
India has witnessed a remarkable surge in silver prices this year, nearly doubling from Rs 1,100 per 10-gram coin last Dhanteras to around Rs 1,950 this year. The 98% year-on-year spike is driven by a combination of festive buying, industrial demand in EVs, solar panels, and semiconductors, and global investor interest amid geopolitical tensions. Major cities saw prices touch Rs 1.89 lakh per kg in Delhi, Kolkata, and Mumbai, and Rs 2 lakh in Chennai in mid-October 2025.
Experts, however, anticipate a short-term correction post-Diwali. With festive demand tapering off, investor profit-taking, and potential easing of global tensions, silver prices could see a 10–20% dip. Jitendra Kumar, Mumbai-based jeweller, noted that buyers for weddings are actively purchasing, while others are holding off, awaiting price stabilization.
Despite the short-term volatility, long-term projections remain positive. Reports from Motilal Oswal Financial Services indicate silver could reach $77 per ounce by 2027, driven by industrial demand and a global silver deficit of 150 million ounces annually. Analysts emphasize that unlike past speculative rallies, the current surge is rooted in real industrial demand, suggesting prices are unlikely to crash.
Investors are advised to approach silver as a long-term hedge while remaining cautious of short-term price swings. The post-Diwali period may offer an opportunity to buy at relatively lower prices before the market resumes its upward trajectory.
