Silver Outlook: ₹2.4 Lakh by 2026, Risks Persist

• Silver hit ₹2 lakh/kg on MCX, with Axis Securities projecting a target of ₹2.4 lakh/kg by 2026, advising buying on dips.
• The rally is driven by strong industrial demand from solar PV, EV batteries, and semiconductors, which constitute over 50% of silver's consumption.
• Despite a constructive outlook, risks include high valuation, weak physical demand, a strong US dollar, and central banks' focus on gold.
• Technical indicators suggest early cycle strength, with a 'rounding bottom breakout' after a long consolidation period.
• Inelastic supply, as silver is a by-product, has resulted in a market deficit for the fifth consecutive year, contributing to price strength.

Why It Matters: Silver could reach ₹2.4 lakh by 2026, offering investment potential despite risks.