Silver can shine another 20% after remarkable 70% rally, says Emkay. Here’s why

Silver prices could surge to as much as $60 per ounce over the next year, reflecting a potential 20% year-on-year rise, according to Emkay Wealth Management. The wealth and advisory arm of Emkay Global Financial Services said the bullish outlook is driven by robust industrial demand amid a persistent supply deficit that currently stands at 20% and is likely to continue in the near term.

Silver investors have already ridden the metal to a blistering 90% gain in calendar year 2025. In the international market, silver prices held steady around $49 per ounce, hovering near record highs as political and economic uncertainties continued to fuel safe-haven demand. Comex Silver has surged approximately 70% year to date, while MCX Silver has appreciated roughly 71%.

Gold, too, has delivered strong returns, outperforming most traditional asset classes. Year-to-date, as of October 8, gold has posted gains of 61.82%, outpacing Indian equities, which returned 4.2% as measured by the Nifty 500 TRI, and bonds, which gained 8.4% on the Crisil Short Term Bond Index. Precious metal prices, Emkay noted, remain closely tied to movements in the U.S. dollar, with expected rate cuts in the U.S. likely to weaken the dollar and lend further support to gold.

“Increased preference for gold over the U.S. dollar by institutional investors and central banks lies at the heart of the appreciation in precious metals,” said Ashish Ranawade, Head of Products at Emkay Wealth Management. “Demand-supply dynamics are favorable for silver, which is technically near a breakout zone for all-time high prices.”

Turning to equities, Emkay Wealth said Indian stock valuations remain elevated. The Nifty 100 is currently valued at 21.8 times earnings, the Nifty Midcap 150 at 33.6, the Nifty Smallcap 250 at 30.43, and the Nifty Microcap 250 at 28.88. Despite rich valuations, domestic investors continue to pour funds into equities.

“Structurally, India is expected to be an outlier in the global economic landscape,” said Dr. Joseph Thomas, Head of Research at Emkay Wealth Management. “A spate of IPOs has widened the market beyond what indices capture. Stock-specific opportunities remain abundant, and we expect PMS, AIF, and active fund managers to perform well.”Emkay Wealth believes India’s compelling growth story is underpinned by attributes such as a large, high-growth market, digital leadership, infrastructure expansion, reform momentum, the China+1 strategy, and balanced geopolitical partnerships.Despite global disruptions caused by U.S. tariffs and geopolitical conflicts, the International Monetary Fund expects only a modest 0.5 percentage point drag on global growth in 2025. For India, growth is projected at 6.2–6.3% for 2025 and 2026, supported by domestic demand, GST rationalization, easing interest rates, and higher consumer spending.

India’s economy, Emkay added, continues to display resilience, with manufacturing and services PMI touching a 15–17-year high in August 2025 — underscoring sustained expansion across sectors.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)