Silver outlook: After steep runup over the past year, buy on dips

The rupee's depreciation against the US dollar since Diwali 2024 has supported domestic prices

Two fund houses, Zerodha and 360 ONE, have recently launched new fund offers of silver exchange-traded funds (ETFs). Emkay Wealth Management, in a recent research note, expressed optimism about silver’s prospects over the next 12–18 months. The metal has already delivered 12.3 per cent return year-to-date. 

Driven by industrial demand 

A recovery in China would be positive for silver. “If industrial activities in China recover after the recent economic stimulus, that would raise industrial demand for silver,” says Hareesh V, head of commodities, Geojit Financial Services. 

Silver’s safe-haven appeal has also gone up. “Significant increase in uncertainty amid geopolitical tensions