NEW DELHI – Silver prices could surge to as high as $60 per ounce within the next year, representing a 20 percent rise from current levels, according to a new report from Emkay Wealth Management. The projected rally is attributed to a widening supply–demand gap and growing industrial consumption of the metal.
The report said a 20 percent supply deficit will likely drive the next phase of price escalation, while an anticipated series of U.S. interest rate cuts may weaken the dollar—further bolstering precious metal prices, particularly gold.
Gold has already outperformed most asset classes this year, returning 61.82 percent through October 8, compared with 4.2 percent for Indian equities (Nifty 500 TRI) and 8.4 percent for bonds (Crisil Short Term Bond Index), the firm noted.
Ashish Ranawade, Head of Products at Emkay Wealth Management, said both institutional and central bank preferences are shifting toward gold as an alternative to the dollar. “Demand-supply dynamics are favorable to bring upward mobility in silver prices, which are now technically near a breakout zone for all-time highs,” Ranawade said.
The report also observed that India’s equity valuations remain elevated relative to growth prospects. It pointed out that the price-to-earnings ratio stands at 21.8 times for the Nifty 100, 33.6 for the Nifty Midcap 150, 30.43 for the Nifty Smallcap 250, and 28.88 for the Nifty Microcap 250—levels that suggest limited near-term upside.
Dr. Joseph Thomas, Head of Research at Emkay Wealth Management, said India remains a structural outperformer in the global economic landscape. “A spate of IPOs has made India a much wider market than what the indices indicate. Stock-specific opportunities remain prevalent for Indian investors. We expect PMS, AIF, and active fund managers to do well,” he said.
Emkay also pointed to a favorable monsoon and healthy water reserves as positive indicators for the second half of the fiscal year, which could support stronger growth during the festive and busy season.
With industrial demand rising and monetary conditions expected to ease, the report concludes that silver may be poised for one of its strongest performances in years—mirroring gold’s sustained momentum and underscoring the resilience of precious metals amid global economic uncertainty. (Source: IANS)
