The year silver stepped out of gold’s shadow to become one of the world’s best-performing metals

Silver stepped out of gold’s shadow in 2025 and delivered a performance without modern precedent. What began as a recovery trade evolved into a full-fledged structural rally, driven by a rare convergence of safe-haven demand, easing global monetary policy and accelerating industrial consumption.

By the end of the year, silver had gained 157% year-to-date, far outpacing gold and setting itself up for what market participants describe as the strongest year ever recorded for the metal.

Macro uncertainty set the stage

The rally unfolded against a volatile global backdrop.

Early 2025 was marked by tariff-related tensions, geopolitical conflicts and weak market sentiment, triggering a broad risk-off phase across asset classes.

From January through September, markets were driven largely by global cues rather than domestic fundamentals.

“Gold and silver rallied during the year as safe-haven assets amid global uncertainty,” said Nehal Mota, Co-Founder and CEO of Finnovate, noting that as inflation eased and interest rates declined—by around 75 basis points in India—investors increasingly turned to precious metals for stability.

As macro conditions improved in the second half, silver’s rally broadened rather than faded, supported by improving growth expectations and stronger industrial demand.

Industrial demand takes the lead

What clearly differentiated silver in 2025 was its dual identity.

“While gold demand was driven by its safe-haven status, silver benefited from its role as both a precious metal and an industrial input,” said Samit Guha, Managing Director and CEO at MMTC-PAMP.

He highlighted rising use in green and new-age technologies such as solar power, electric vehicles and electronics, which tightened supply and lifted long-term demand expectations.

This structural shift drew renewed investor attention to silver, particularly as industrial recovery coincided with global monetary easing.

Nikunj Saraf, CEO of Choice Wealth, said silver “stole the spotlight” in 2025, supported by booming industrial demand and tightening global supply.

He added that silver’s supply deficit shows no signs of easing, reinforcing its medium-term investment case despite heightened volatility.

Jewellery and retail demand: Measured, not speculative

Silver’s price surge did not translate into speculative excess in consumer markets. Instead, jewellery demand adjusted gradually.

“2025 has been a year of structural recalibration rather than speculative excess,” said Ankur Daga, Founder and CEO of Angara, noting that while silver prices surged sharply, average ticket sizes rose at a far more measured pace.

According to Daga, jewellery brands absorbed part of the commodity volatility rather than passing it fully on to consumers, while silver gained relevance due to its affordability relative to gold and its expanding industrial narrative.

ETFs, younger investors and broader participation

Investment access played a key role in broadening silver participation. ETFs delivered standout returns even as equity markets experienced repeated bouts of volatility, offering investors liquid exposure to the metal’s rally.

Guha of MMTC-PAMP also pointed to rising interest among younger investors, who view silver as a long-term allocation rather than a short-term trade, with strong demand for high-purity minted bars and coins.

What lies ahead: Volatility, but a positive bias

After a rally of this magnitude, analysts widely expect short-term consolidation, describing it as a natural pause rather than a trend reversal.

At a broader level, brokerages expect silver to continue outperforming gold into 2026, supported by easing global monetary policy and a recovery in industrial demand.

Kotak Securities said double-digit growth in photovoltaic deployment, rapid expansion of EV charging infrastructure, improving battery technologies and wider semiconductor applications could keep silver demand elevated.

The brokerage projects silver to trade in a broad range of $48 to $70 per ounce, with potential spikes toward $75 an ounce under conditions of aggressive monetary easing or stronger-than-expected industrial consumption.

Axis Securities cautioned that prices above $60 per ounce could trigger some demand destruction or substitution in industrial use, but added that a sustained close above $67 an ounce could open the door to a multi-year uptrend targeting $76–$80 an ounce.

In the domestic market, analysts see any correction toward the ₹1.70-1.78 lakh per kg range as an opportunity for staggered accumulation, with targets around ₹2.40 lakh per kg in 2026.

LKP Securities expects silver prices to move toward ₹2.25-2.50 lakh per kg over the same period.