Silver Prices After 150% Rally: Are Profit-Taking Signals Emerging?

Silver has delivered one of the strongest rallies seen in decades, but after rising more than 150% in 2025, market experts are beginning to flag signs that the metal may be entering a profit-booking phase.

Data from the Multi Commodity Exchange (MCX) shows that March 2026 silver futures touched a record high of ₹2,24,430 per kg on December 24, while global prices crossed $75 per ounce for the first time. The rally has been fuelled by geopolitical tensions, including the prolonged Russia-Ukraine war and renewed friction between the US and Venezuela, along with supply shortages caused by heavy inventory hoarding in China and the US.

Are silver prices showing stress signals?

While the long-term outlook for precious metals remains constructive, analysts say certain indicators now warrant caution - particularly the gold-silver ratio, a key metric used to assess relative valuation between the two metals.

In 2025, the ratio dropped sharply from 107 to nearly 64, reflecting silver’s exceptional outperformance. According to Kedia Advisory, the ratio is approaching a structural support level near 62.5, a zone that has historically preceded short-term corrections in silver during earlier cycles.

Technical indicators also paint a mixed picture:

• RSI is nearing extreme levels, suggesting potential exhaustion

• MACD and Ichimoku signals point to short-term consolidation

Experts stress that these signals indicate cooling, not collapse.

Rotation within metals, not a breakdown

Justin Khoo, Senior Market Analyst (APAC) at VT Market, says such phases often mark internal rotation rather than the end of a bull market.

“Historically, sharp silver outperformance is followed by phases where gold stabilises and silver corrects. This reflects a healthy rebalancing within precious metals,” he said.

From an investor’s perspective, this kind of evaluation mirrors the approach used in auditing services in india, where financial ratios, trend deviations and risk indicators are examined closely to assess sustainability rather than short-term noise.

Diverging expert views

Ajay Suresh Kedia, Founder of Kedia Advisory, believes silver could still move toward $100 per ounce over the next three years, even if interim corrections occur. He highlighted key gold-silver ratio levels between 45 and 76 over the medium term.

Meanwhile, Kaveri More, Commodity Analyst at Choice Broking, remains optimistic. She notes that ratios below 70 historically continue to favour silver due to its growing industrial demand, with support expected near $60–65 per ounce.

In India, analysts expect MCX silver prices to fluctuate between ₹1.90–2.50 lakh per kg in 2026, depending on global rate cuts, inflation trends and central bank policies.

Bottom line

Silver’s extraordinary rally may face near-term profit-taking, but structural drivers such as inflation risk, fiscal stress and supply constraints remain intact. For investors, disciplined analysis - rather than emotional reactions - will be key in navigating the next phase of the metals cycle.