Investors looking to add silver to their portfolios should focus on disciplined allocation rather than short-term speculation, according to market expert Apurva Sheth of Samco Securities. He emphasizes that while silver holds long-term potential, its sharp price swings make strategy and patience essential for successful investing.

Why Silver Drew Investor Attention

Earlier this year, silver experienced significant volatility. On January 30, 2026, the metal recorded a dramatic single-day drop of more than 26%, marking one of its steepest declines since 1980. Such sharp corrections are not unusual for silver, which historically has been more volatile than gold due to its dual role as both a precious and industrial metal.

Prior to that fall, prices had surged sharply. Silver had climbed from around ₹78,000 per kilogram to cross ₹1 lakh per kilogram and even touched record highs. Analysts say that rally was supported by expectations of lower U.S. interest rates, a weaker dollar, and strong industrial demand.

Signals That Previously Pointed to a Breakout

Before the rally, silver traded for months in the $21–$26 per ounce range, far below its historical peak. At the time, Sheth and his research team identified technical compression patterns and relative undervaluation signals. Another indicator was the historically low silver-to-gold ratio, suggesting silver was comparatively cheaper than gold and had room to catch up.

These factors led analysts to predict a potential breakout, with some projections pointing toward the $50 per ounce level if favorable macroeconomic conditions continued.

Why Volatility Is Normal in Silver

Experts note that sharp rallies and corrections are characteristic of silver markets. Unlike gold, whose demand is largely investment-driven, silver is widely used in industries such as electronics, solar panels, and manufacturing. This means its price reacts not only to financial trends but also to industrial cycles and supply constraints.

Because of this dual demand structure, silver often rises rapidly during bullish phases but can also correct sharply when market sentiment shifts or liquidity tightens.

Three Key Rules for Silver Investors

According to Sheth, investors should keep three principles in mind before entering the silver market:

1. Avoid FOMO (Fear of Missing Out)

Rushing into the market after a price surge can expose investors to sudden corrections. Waiting for suitable entry points helps manage risk.

2. Focus on Allocation, Not Speculation

Instead of trying to time short-term price movements, investors should treat silver as a strategic portfolio component. This approach reduces emotional decision-making and improves long-term outcomes.

3. Track Key Global Indicators

Silver prices are heavily influenced by macroeconomic factors such as:

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  Strength or weakness of the U.S. dollar

  
  


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  Real interest rates

  
  


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  ETF investment flows

  
  

When the dollar weakens and liquidity conditions remain stable, precious metals—including silver—often gain momentum.

Recommended Portfolio Allocation

For most investors, Sheth suggests allocating around 5% to 15% of a diversified portfolio to silver, depending on risk tolerance. Conservative investors may prefer the lower end of that range, while aggressive investors with higher volatility tolerance could allocate more.

He stresses that investors should view silver as part of a broader structural cycle rather than a quick-profit opportunity. While the long-term outlook may appear positive, short-term price swings are likely to continue.

Long-Term Perspective Matters

Market strategists believe silver’s outlook remains tied to global economic trends, industrial demand, and monetary policy signals. As renewable energy technologies expand and manufacturing demand rises, industrial consumption of silver could remain strong.

However, experts caution that volatility will remain a defining feature. Investors who approach silver with discipline, realistic expectations, and a diversified strategy are more likely to benefit than those chasing rapid gains.