Silver Price Prediction: Traditionally, gold dominates India’s festive buying season, but this year, silver is taking center stage. Prices of silver have surged nearly 75 per cent in 2025, reaching all-time highs amid soaring global demand.
From households and industries to central banks, silver is emerging as the metal of choice. In India, prices have touched around Rs 1,50,000 per kg, outpacing gold and most other commodities, driven by industrial demand, supply shortages, and renewed investor interest.
Market expert Sugandha Sachdeva, in an exclusive interview, highlighted, “Silver is far more affordable and accessible for small investors. Digital platforms, ETFs, and mutual funds have made it easy to invest without worrying about purity, storage, or liquidity.”
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Silver Outperforms Gold in 2025
Both metals delivered strong double-digit returns this year, but silver has outshone gold with year-to-date gains of 75 per cent, compared with 60 per cent for gold. The Gold-to-Silver Ratio has fallen from 107 in April 2025 to around 80 in October, marking the lowest level in a year and below its five-year average.
Silver’s strength lies in its industrial usage, which accounts for nearly 60 per cent of global consumption. The metal is critical in solar panels, electric vehicles, 5G infrastructure, and semiconductors, making it a key player in the green-energy transition and modern technology.
What’s Driving the Rally?
Several global factors have fueled silver’s rally this year. A dovish U.S. Federal Reserve, a weaker dollar, geopolitical developments like the U.S. government shutdown, and silver’s inclusion on the critical-minerals list have amplified demand.
Estimates suggest a 187.6-million-ounce deficit in silver in 2025 due to rising industrial consumption. ETF inflows surged, with 95 million ounces added in the first half of the year. “The ongoing green transition is structurally bullish for silver, with chronic supply shortages expected to persist,” Sachdeva noted.
ETFs and Portfolio Allocation
In India, silver ETFs are gaining traction. Net inflows hit a record Rs 5,341 crore in September 2025, taking total assets under management to Rs 36,460 crore. Digital platforms have simplified investment, driving retail participation and portfolio diversification.
Sachdeva advises allocating 5–7 per cent of an investment portfolio to silver, with combined gold and silver exposure of 10–15 per cent considered prudent for diversification and inflation protection.
Silver Price Prediction 2026
While some consolidation is possible, sustainability above $50/oz is seen as key for further momentum. With supportive macro trends—including softening rates, a weak dollar, industrial deficits, and geopolitical risks—silver could target $70–75/oz over the next 12 months, translating to Rs 2,00,000–Rs 2,15,000 per kg domestically, noted Sugandha Sachdeva.
“Silver may not replace gold’s cultural dominance in India,” Sachdeva concluded, “but it is emerging as the new-age precious metal. For India’s middle class, it could bridge the gap between aspiration and opportunity.”
