Silver prices have recently undergone a sharp correction, but experts believe this could present a long-term buying opportunity. Ketan Dhruv of Bangalore Refinery suggests that support for silver prices may be found around $50 an ounce, which could serve as a new base for a potential rally. The recent decline has brought prices closer to levels seen around the same period last year, cooling some of the market's earlier optimism.
Dhruv expects India's silver demand to remain stable this year, though imports are likely to decline due to softer demand and government restrictions. He notes that the hype surrounding silver has cooled off, bringing the market back to more normal levels after a sharp price increase between October 2025 and March 2026. Industrial demand has remained stable, without a significant increase to justify the recent rally.
Silver jewellery continues to be a significant part of the market, with demand picking up over the past year. Unlike gold, weight is less of a concern for silver buyers, with quality of finish and anti-tarnish properties being key considerations. The industry is working on improving product durability and appeal.
India's silver imports could decline by around 20-40% this year, reflecting softer demand and recent government restrictions. Although import rules have been eased, Dhruv expects shipments to remain lower for now. He cautions that a sudden recovery in investor demand could change the outlook.