Why Vedanta’s Anil Agarwal believes the silver rally is 'just the beginning'

Vedanta Group Chairman Anil Agarwal believes the sharp rally in silver prices is still at an early stage, driven by the metal’s strong performance in 2025 and its expanding role as both a precious and industrial commodity.

In a post on social media platform X, Agarwal said silver has gained around 125% in US dollar terms so far this year, significantly outperforming gold, which has risen by about 63% over the same period.

According to him, the move marks a shift in silver’s position within the precious metals space.

This year, silver has emerged from the shadow of its precious metal sibling, gold. What a year for silver, with year-to-date appreciation of 125% in dollar terms. In comparison, Gold, which also had a very

good year, appreciated by 63%, half of silver's returns.

And the silver… pic.twitter.com/6XpYmEt1sm

— Anil Agarwal (@AnilAgarwal_Ved) December 23, 2025

Agarwal attributed the rally to silver’s dual demand profile.

While it continues to serve as a store of value, he noted that silver also has growing functional use in solar energy, defence and emerging technologies, giving it an additional demand base beyond investment and jewellery consumption.

Silver’s industrial relevance has increased alongside global investment in renewable energy and advanced manufacturing. At the same time, supply growth has remained relatively constrained, as silver is largely produced as a by-product of zinc and lead mining, limiting the industry’s ability to respond quickly to rising demand.

The comments come as silver trades at all-time high levels in both global and domestic markets, supported by investor interest amid global economic uncertainty and expectations of monetary easing in advanced economies.

Vedanta is India’s largest silver producer through Hindustan Zinc Ltd, where the metal is recovered as a by-product of zinc and lead operations. Agarwal did not reference Vedanta’s financial performance in his remarks, focusing instead on broader market dynamics.

By stating that “the silver story is just beginning,” Agarwal framed the rally as being driven by structural demand factors rather than short-term market sentiment, even as analysts caution that commodity prices remain volatile.