Silver is in the spotlight these days: it’s experiencing a strong rally, driven by both investment demand and industrial use (solar panels, electronics, etc.). But with big moves come big risks. In this blog, we’ll examine possible price targets & assess the risk of a sharp decline and how investors might navigate this.

» Why Silver Is Rallying Now

• Industrial demand: Silver is used in many green technologies, electronics, photovoltaics, etc. This gives it both safe-haven and usage demand.

• Supply constraints: The silver supply side has challenges. Many silver producers are by-product miners (i.e. silver is secondary to gold, copper, zinc output).

• Tight physical markets & borrowing/lease rates: In markets like London, lease rates for borrowing silver have shot up, which reflects scarcity of physical metal.

• Macro / monetary factors: Inflation, fears of monetary debasement, central bank policies, rate cuts – all push investors toward real assets.

• Momentum & sentiment: As silver breaks key resistance levels, momentum traders and “fear of missing out” drive additional flows in.

 

» Historical Precedents: Lessons from the Past

A key historical reference is the 1980 “Silver Thursday” crash. In the late 1970s, the Hunt brothers attempted to corner the silver market, pushing prices to extreme highs. But when margin rules tightened and liquidity dried, silver collapsed sharply.

Also, after the 2011 silver peak, a sharp retrenchment followed as speculative excess unwound. These serve as cautionary tales for today’s market: extreme price moves often reverse with force.

Another point: silver is known to be much more volatile than gold, due to its smaller overall market size, lower liquidity, and dual role (industrial + monetary).

» Is Now the Time to Buy or Hold?

Whether now is a good time depends heavily on your risk tolerance and investment horizon.

• If you’re bullish long term and can stomach volatility, silver has a compelling case, especially given structural demand trends and supply constraints.

• If you’re short-term oriented or risk averse, the possibility of a sharp correction is very real, and watching for confirmation rather than chasing the top may be wiser.

Per one opinion piece: some analysts worry that silver may crash like in 1980 or 2011 after a speculative run. Kitco But others argue that today’s conditions differ, and this is not just a speculative bubble but a sustainable bull market.

Bullish Targets (Upside Scenarios)

If global demand for industrial metals and clean-energy materials continues rising and central banks start cutting rates, silver could surprise on the upside.

These targets assume silver follows the same structural uptrend seen in gold, but with more volatility and leverage.

Crash Scenarios (Downside Risk)

Silver is notorious for its wild swings. The same volatility that drives massive rallies can also cause deep crashes.

Historically, silver tends to drop 30–40% quickly once euphoria fades – especially after a parabolic rally.

Silver is entering a high-volatility zone.
If global liquidity expands and inflation fears rise, silver could test ₹2 lakh per kg within 2-4 months.
But if markets tighten, a drop back toward ₹1,10,000 is equally possible.