Has Silver Entered a Long-Term Bull Phase After Crossing ₹2,00,000 per Kg?
About Silver as an Investment Asset
Silver occupies a unique position among commodities, acting both as a precious metal and an industrial input. Its demand is driven by jewellery, investment, electronics, renewable energy, and electric vehicle applications. Over long market cycles, silver has shown higher volatility than gold, often delivering sharper percentage moves once structural breakouts occur.
The Indian bullion market witnessed a historic moment as silver prices surged to ₹2,00,000 per kilogram, marking a decisive breakout from years of consolidation. This move is not being viewed as a speculative spike, but rather as confirmation of a long-term structural trend that has been building quietly over more than a decade.
Key Highlights from the Silver Rally
Silver achieves a new all-time milestone at ₹2,00,000 per kg in India.
Axis Securities maintains a bullish long-term outlook with higher price projections.
Corrections are viewed as accumulation opportunities rather than trend reversals.
A multi-year technical breakout strengthens the bullish structure.
According to Axis Securities, the recent price action reflects a confirmed breakout from a multi-year “rounding bottom” pattern that formed between 2011 and 2025. Such formations are considered powerful in technical analysis, as they represent gradual accumulation by long-term participants followed by an acceleration phase once resistance is cleared.
From a strategy perspective, the brokerage does not recommend chasing prices at elevated levels. Instead, it highlights a disciplined buy-on-dips approach, identifying the ₹1,70,000–₹1,78,000 per kg zone as an attractive range for staggered accumulation. This framework improves risk-adjusted returns while staying aligned with the broader bullish trend.
For traders and investors seeking structured exposure across asset classes, disciplined execution supported by a Nifty Tip approach helps maintain balance between commodity momentum and equity participation, especially during inflationary cycles.
Silver vs Other Assets — Comparative View
| Parameter | Silver | Gold |
|---|---|---|
| Volatility | High | Moderate |
| Industrial Demand | Very High | Low |
| Long-Term Breakout Signal | Confirmed | Gradual Trend |
The bullish outlook is also supported by macro factors such as global monetary easing expectations, persistent geopolitical uncertainty, and accelerating demand from green energy technologies. Silver’s role in solar panels and electric vehicles adds a structural demand layer that did not exist at scale in previous cycles.
StrengthsStrong multi-year technical breakout Rising industrial and green energy demand Inflation hedge characteristics |
WeaknessesHigher volatility than gold Sharp interim corrections possible Sentiment-driven short-term swings |
While volatility remains an inherent feature of silver, the current price structure suggests that corrections are likely to be corrective in nature rather than trend-ending. Long-term participants often use such phases to gradually build exposure rather than attempting perfect market timing.
OpportunitiesTarget potential of ₹2,40,000 per kg by 2026 Portfolio diversification benefits Alignment with global energy transition |
ThreatsSudden risk-off global events Sharp currency movements Over-leveraged speculative positions |
Axis Securities’ bullish projection of nearly ₹2,40,000 per kg by 2026 underscores confidence in the longevity of this cycle. However, disciplined risk management remains critical, especially given silver’s tendency to amplify both upside and downside moves.
Valuation & Investment View
Silver’s long-term valuation appears supported by technical structure and structural demand growth. Investors with a multi-year horizon may consider staggered accumulation on declines, while traders should focus on disciplined execution supported by a BankNifty Tip style risk-managed approach to avoid emotional decisions during volatile phases.
Investor Takeaway
Silver crossing ₹2,00,000 per kg marks more than a psychological milestone; it signals the activation of a long-term bullish structure. Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes that disciplined accumulation, risk management, and patience are essential to benefit from this cycle. A structured perspective on commodities and equities continues to be emphasised at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
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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.
