Why Has Nilesh Shah of Kotak AMC Turned Bullish on Silver Amid Surging Prices?
About the Recent Move in Precious Metals
Silver prices have hit an all-time high globally, triggering renewed investor attention. Kotak Mutual Fund has now halted fresh lumpsum investments in its Silver ETF Fund of Fund — a clear indication of frothy sentiment and elevated demand levels.
Gold vs Silver: Diverging Dynamics
Nilesh Shah, Managing Director of Kotak AMC, noted that while gold’s rise has been driven by large-scale central bank buying, the industrial and festive demand for silver is creating a significant supply deficit. According to him, global bullion trends are now more dependent on monetary easing than mere inflation expectations.
He highlighted that if the US Federal Reserve cuts interest rates and the dollar weakens, gold prices could see a correction — but silver may continue to outperform due to its dual role as a precious and industrial metal.
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Festive and Industrial Push for Silver
The silver demand surge is not purely speculative — it’s being reinforced by real consumption. Festival-related jewellery buying in India has coincided with increased demand from solar panel and electronics manufacturing sectors, tightening supply further.
Shah revealed that Kotak AMC had turned bullish on silver nearly eight months ago, expecting the metal to outperform gold due to industrial tailwinds and a global shift toward green energy.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that the current divergence between gold and silver could widen further if industrial activity accelerates post-US rate cuts. He believes silver may retain leadership among precious metals into FY26.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
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