Precious metal markets are witnessing a huge sell-off, and silver is bearing the brunt of the pain. Most analysts see near-term pain but believe that fundamentals continue to be strong. They see this as an opportunity for long-term investors.
Silver price action: What led to the sharp swing
On Wednesday, the white metal fell to its lowest level since November 2025, trading near $56/oz, marking a fall of over 53% from its January peak of $121/oz.
In international markets, silver was quoted near the $57/oz mark, down more than 23% on a calendar year basis. The volatility for the shiny asset comes on the back of a multi-year high dollar index and increased expectations of rate hikes by the US Federal Reserve, as the precious metal wiped out more than 20% of its gains since the outcome of June’s FOMC.
With the Fed’s hawkish stance under the new chair, Kevin Warsh, and easing geopolitical situations, investors are now questioning if this dip is a good time to enter or wait for better.
Analysts advice caution on fresh buying
Analysts say despite supportive industrial demand, silver remains vulnerable to further price falls, citing easing geopolitical premium and hawkish bets by the Fed. According to Hareesh V, Head of Commodity Research at Geojit Investments, fresh buying for the white metal should be approached cautiously.
“Prices remain vulnerable to further downside, especially when compared to historical averages, indicating scope for additional correction. Investors are advised to wait for more attractive entry points rather than rushing in, as near-term volatility and profit-booking pressures could continue to weigh on prices,” the Geojit analyst added.
Echoing a similar stance, Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, noted that prices are likely to fall further. “Over the next one to two months, prices can fall further as the Fed stays hawkish. The level to watch is $48 — silver’s multi-decade breakout zone, where a 45-year-old ceiling was finally cleared last year,” he said.
Opportunity for accumulation
However, Navneet Damani, Head of Commodity Research at Motilal Oswal Financial Services, said, “We view this as an opportunity for gradual accumulation rather than a signal to stay away.” He added that prices of this asset are expected to remain range-bound in the near term, as the fundamentals driving the metal remain intact.
“Investors with a medium- to long-term horizon can consider staggered buying on declines instead of waiting for the perfect entry point,” Damani noted.
According to the Kotak analyst, over the next two to three months, the US Fed is expected to shift towards a neutral stance from the current hawkish stance, over which silver prices may trade within the $48 to $50 zone, presenting a lucrative opportunity for long-term investors.
“These are accumulation zones. On a 12-month-plus view, this is precisely where long-term investors should start scaling into silver and gold systematically, keeping an 18–24 month horizon, rather than trying to time the exact low,” Banerjee said.
Is silver in the bear zone now?
Despite the recent price crash, commodity experts remain divided on whether the non-interest-yielding white metal has entered the bear market. “Silver has already entered the bearish category; nonetheless, the market fundamentals change rapidly,” said Jigar Triviedi, Senior Research Analyst at IndusInd Securities.
However, Hareesh V of Geojit noted that the asset has not officially entered the bearish phase, but the risk is rising. “Sustained trading below the $45 mark would signal increasing downside pressure, indicating a shift toward a bearish structure. Until then, the trend remains vulnerable but not decisively negative,” he said.
Silver: Still a chance at $100?
Meanwhile, Peter McGuire, CEO of Trading.com Australia, emphasised that the recent fall in silver provides traders with great room for physical buying. “We all understand military usage, jewellery, energy, as far as batteries and so on. The storyline hasn’t changed, and that’s a time to probably consider if you’re buying physical,” he said.
He noted that silver is expected to see upside from the current price levels and is likely to trade at the $100/oz mark by June 2027. “I think it’s a wonderful time to buy, and buying on the dip could be very strategic. It could go down further, who knows, but I think its upside has plenty of potential,” McGuire added.
Silver: The outlook for near-term
Jewellery demand across India and China is likely to dictate the medium-term trend for the white metal. “Overall, COMEX Silver may stay in the range of $50 to $70/oz in H2 2026,” Trivedi pointed out.
According to Hareesh V, silver is likely to remain volatile for the remaining part of the year. “Prices may broadly trade in the $45–75 per ounce range, reflecting uncertain demand and macro pressures.
In the domestic market, downside toward Rs 1,75,000/kg cannot be ruled out, while Rs 2,90,000/kg is expected to act as a strong resistance zone, limiting sharp upside in the near-term,” he added.
Disclaimer: Market views, price targets, and support levels provided by analysts in this report are strictly for educational and informational purposes and do not constitute an offer, solicitation, or recommendation to trade in commodities, futures, or ETFs. Commodity investments involve significant market and volatility risks, and past performance is not indicative of future results. Readers are strongly advised to consult a SEBI-registered investment advisor or qualified financial professional before making any trading or investment decisions.
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