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For the precious metals industry, this year has witnessed a bullish run with gold prices breaching Rs 1.2 lakhs per 10 grams, mainly due to global geopolitical events
Silver Price Prediction
For the precious metals industry, this year has witnessed a bullish run with gold prices breaching Rs 1.2 lakhs per 10 grams, mainly due to global geopolitical events and silver outperforming gold with prices soaring nearly 69% year-to-date, with demand from high-growth sectors like solar, EVs, electronics, and other green technologies.
The white metal’s outperformance is the steepest in years, setting the commodity world abuzz, whether the rally is time to rethink the approach towards silver or just passing sparkle?
One has to take cognizance of the dual nature of silver, as a precious metal and as an industrial application. Though gold has some industrial utility, it is mainly seen as a hedge against volatility and a safe haven asset for investment. Silver, on the other hand, finds its way into factories that build the future, with 60% usage in industries such as solar panels, electric vehicles, semiconductors, and medical devices. As the demand for green energy and technologies rises, silver’s demand has turned structural rather than cyclical.
It is prudent to note that over the last five years, globally, there is silver supply deficit, as the usage is more than the amount being extracted or mined. Most silver isn’t mined directly but comes as a by-product of copper, lead or zinc extraction. Rising demand or price rally for silver has its limitations as mines cannot instantly increase production. Additionally, headwinds such as regulatory disparity, falling core quality are affecting the supply chain to keep up with the rising demand.
On the demand side, solar power alone is consuming over 230 million ounces of silver annually. The boom in electric vehicle production and demand, and carbon-zero policies of various nations, is powering the rally for this metal. Similarly, the industrial appetite in electronics, 5G, and battery technology is tremendous, making silver an ideal alternative investment metal.
Furthermore, investors are on the lookout for safe haven assets beyond gold to diversify their investment portfolio. Amidst the economic uncertainties and geopolitical events pushing gold price to record highs, many are turning to silver as an alternative with greater volatility and potential for higher upside. The gold to silver ratio (GSR), which tells us how many ounces of silver equal one ounce of gold, has fallen sharply to around 81:1 (from above 100 earlier this year), signalling that silver is catching up fast.
With the festive season lining up from Dhanteras, Diwali, and wedding celebrations, silver’s appeal remains strong, carrying a cultural warmth. Consumers are turning to the purest silver at 999.9+ purity minted products, such as coins and bars, with positive weight tolerance. The growing acceptance of silver in Indian households is further solidifying its demand. Minted silver coins and bars with cultural and traditional motifs make it more personal and enduring.
Therefore, in terms of the silver rally sustaining, in the medium term, there are reasons to believe it will continue well into the new year. The industrial push and demand for this precious metal is unlikely to slow down any time soon. Along with this, recent geopolitical events will ensure global market of economic stability, leading to further enhancing industrial output, which will sustain demand for silver.
However, silver’s smaller market size makes it open to volatility. Depending on an individual’s risk appetite, investment in silver can either see their investment appreciation or go the opposite way. Several triggers could cool the current heat, such as a reversal in US monetary policy, a slowdown in Chinese or European manufacturing, or large investors booking profits after the festive rush. Historically, when the gold–silver ratio falls below long-term averages (around 65:1), it has often signalled that silver may be overbought in the short term.
Thus, it is essential to view silver not just as an investment option but as a dual-use metal. Whether it’s a coin in a festive gift box, a layer in a solar panel, or a component in an electric vehicle, silver’s role in our lives is expanding. Silver’s current rally stands on strong structural legs, like industrial transformation, constrained supply, and rising cultural and retail interest. Yet, like all metals, it remains open to the fluctuations of the global economy.
A more nuanced way to approach silver should be viewed as a transition. The rally of today goes beyond just investor sentiment; it’s a rally of a world in transition, which is moving towards cleaner energy, faster technology, while maintaining traditional values. Irrespective of the rally, silver should be viewed as a long-term value.
Written By: Samit Guha, Managing Director and CEO, MMTC-PAMP
October 17, 2025, 15:36 IST
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