Silver prices in India have hit an eleven-month low, sparking discussions about whether now is a good time to buy for potential returns. This price is significantly lower than the record high of ₹4,20,048 per kg, marking a drop of approximately ₹2,23,500 per kg.
Market experts attribute today's rebound in silver prices to easing crude oil prices and a correction in US bond yields, particularly the US 10-year bond yield slipping below 5%. Anuj Gupta, a SEBI-registered market expert, noted that these factors are encouraging investors to shift their money from bond and currency markets to equities, gold, and silver. He predicts that silver prices may reach ₹2,05,000 per kg in the near term, as the market anticipates a status quo at the upcoming US Fed meeting.
However, the rally in silver prices is expected to be capped by the stable Indian Rupee. Gupta also mentioned that bond yields may experience a 'dead-cat bounce' after a few weeks, with speculation of a US Fed rate hike in the December 2026 meeting. Despite this, the peak of the bond yield is expected to be lower than its recent high.
Nirpendra Yadav, Sr. Research Analyst at Bonanza, advised investors to remain cautious. He suggested that the current volatility in the bullion market does not necessarily indicate that prices have bottomed out. Yadav recommended avoiding aggressive buying and looking for signs of price stabilization before increasing exposure. He also highlighted the long-term structural demand for silver linked to clean energy, electrification, and industrial applications, although he cautioned about risks such as technological changes and slower economic growth.