Can Silver DOUBLE by 2026-27? Should You Buy Now or Wait? | Rahul Jain

Summary

This video explains the risks and strategies for investing in silver, including the importance of understanding the difference between the price of silver and the value of silver-backed ETFs. The creator emphasizes the significance of checking the ETF’s NAV (Net Asset Value) to ensure you're not overpaying. Viewers are advised to be cautious about high ETF prices, and the video offers valuable insights into understanding silver as an investment, warning against hasty decisions. The creator encourages viewers to make informed, strategic decisions before investing.

Takeaways

• 😀 Silver has experienced a strong bull run recently, but future growth could be slow and volatile. It may not continue its rapid price increase indefinitely.
• 😀 The market for silver is subject to external factors, such as global inflation, which will continue to influence its price in the coming years.
• 😀 Historically, silver prices have been unstable, with periods of sharp increases followed by corrections. Investors should prepare for this potential volatility.
• 😀 ETFs are an alternative to directly buying silver, but caution is needed. Silver ETFs may trade at prices higher than their actual value, especially when there’s high demand.
• 😀 The NAV (Net Asset Value) of a silver ETF is crucial. Always check it before buying to ensure you’re not paying more than the actual value of the silver being traded.
• 😀 You can find the indicative NAV on the fund's website, and this will tell you if the ETF is overpriced relative to its actual silver holdings.
• 😀 If the ETF’s price is significantly higher than its NAV, it could mean you're overpaying. Be cautious in such cases unless you are very bullish on silver's future price.
• 😀 Small premiums (1-2%) over NAV are sometimes acceptable, but larger premiums should be avoided to reduce the risk of loss.
• 😀 Share this information with friends who may not understand the risks of investing in silver, especially with the hype surrounding it.
• 😀 While this video does not provide investment recommendations, it aims to educate viewers on making informed decisions about silver investments and understanding market risks.

Q & A

What is the main reason for the recent surge in silver prices in India?

The surge in silver prices in India is primarily due to a mismatch in supply and demand. Physical silver inventories, especially in London, have reached record low levels, causing a temporary spike in prices as demand outstrips available supply.

How does the supply shortage in London affect silver prices?

The supply shortage in London, one of the major global silver hubs, has led to a situation where the available silver stocks are much lower than needed. This has created a temporary price spike, but it is expected to correct once inventories are replenished.

What is the significance of silver prices crossing ₹2 lakh per kg in India?

Silver prices crossing ₹2 lakh per kg in India mark a dramatic increase, almost doubling since June 2025. This is seen as a result of the ongoing demand-supply imbalance, which has pushed silver prices higher.

How does the 2025 silver rally compare to previous silver bull runs, like in 1980 and 2011?

The 2025 rally is different from previous bull runs. The 1980 rally was driven by speculative trading by the Hunt brothers, while the 2011 surge was driven by economic crises and global financial fear. The current 2025 surge is primarily due to a structural demand-supply issue, particularly the increased industrial use of silver.

Why is silver expected to remain scarce in the coming years?

Silver is expected to remain scarce due to its growing demand, especially in solar energy production and other renewable energy technologies. As supply struggles to keep up with this rising demand, silver is likely to remain in scarcity well into the 2030s.

What is the role of silver in renewable energy, particularly solar panels?

Silver plays a critical role in the production of solar panels, as it is used in photovoltaic cells to convert sunlight into electricity. The demand for silver is expected to increase significantly due to the growing adoption of solar energy, further tightening silver supply.

What is the significance of the 'indicative net asset value (INAV)' when investing in silver ETFs?

The INAV of an ETF represents the true or fair value of one unit of the ETF, based on the underlying silver price. Investors should check the INAV to ensure they are not overpaying for an ETF, as some may trade at a premium or discount relative to the actual silver price.

What is the recommended strategy for buying silver in an ETF?

The recommended strategy for buying silver ETFs is to check the INAV and ensure the trading price is not too far above the INAV. Ideally, you should buy when the ETF is priced lower than the INAV, and avoid buying when the price is significantly higher, as this could mean you're paying more than the actual value of silver.

Why should investors avoid buying silver when prices are significantly higher than the 200-day moving average?

Investors should avoid buying silver when its price is significantly higher than the 200-day moving average because it indicates that the price may be temporarily inflated. Buying at this point could lead to losses once the price corrects back to its average or normal levels.

How can inflation and currency devaluation affect the price of silver?

Inflation and currency devaluation can drive the price of silver higher as people seek silver as a store of value. When fiat currencies lose their purchasing power due to inflation or money printing, commodities like silver often appreciate in value as they are considered a hedge against such financial instability.