Silver At 11-Month Low: CA Sarthak Ahuja Breaks Down Whether Investors Should Start Buying

Silver has always been known for its sharp price swings, and the latest correction has once again caught investors' attention. According to finance influencer CA Sarthak Ahuja, silver has fallen significantly from its peak of around ₹4.2 lakh per kg earlier this year to nearly ₹1.95 lakh per kg. With prices hovering near an 11-month low, many investors are now wondering whether this dip presents a buying opportunity.

Why Silver Prices Are Falling:

To understand silver's decline, it is important to look at global interest rate trends and oil prices. When oil prices rise, inflation tends to increase. To combat inflation, central banks, including the US Federal Reserve, often raise interest rates.

According to Sarthak Ahuja, higher interest rates negatively impact silver in two major ways. First, silver does not generate interest or regular income. As bond yields become more attractive, investors often shift their money away from precious metals and into interest-bearing assets.

Second, silver is not just a precious metal but also an industrial metal. Higher interest rates can slow economic activity, reducing industrial demand for silver and putting additional pressure on prices.

What Could Happen Next?

Markets are closely watching the US Federal Reserve's upcoming policy decisions. Expectations of further rate hikes have created uncertainty, and if rates increase again, silver prices could face additional downward pressure.

However, that does not necessarily mean investors should panic. Instead, it highlights the importance of taking a measured approach rather than making aggressive bets on the metal.

The Gold-Silver Ratio Explained:

One indicator often used by investors is the gold-silver ratio, which measures how much silver can be purchased with the value of one kilogram of gold.

At silver's peak in early 2026, the ratio was around 46-50. Today, it is closer to 73. Historically, the ratio has typically moved between 50 and 80. This suggests that silver is no longer in bubble territory and is trading within a more normal historical range.

Should You Buy Silver Now?

Sarthak Ahuja believes the current levels could be an opportunity for investors to start building exposure gradually rather than investing all at once. Since silver remains highly volatile, he advises limiting allocations to around 5% of an overall portfolio.

As always, investors should avoid treating market commentary as investment advice and consult a qualified financial professional before making investment decisions.

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