Kolkata: Gold has hogged the headlines repeatedly this year, as it did on a number of occasions last year, for the continuous surge in prices. In fact, in the week beginning April 21, gold also kissed the psychological level of Rs 1 lakh/10 gms. However, a number of market analysts are of the opinion that silver could upstage gold this year, thanks to its growing demand in different sunrise sectors and a conducive macro-economic environment.
While silver has a safe-haven appeal like gold, it has the additional demand from the industrial sector which is rising. The significant point is that the demand is triggered from sectors such as non-conventional energy (manufacture of solar panels), application of 5G technology and high-performance electronic equipment required by AI technology. While the industrial application has fueled the hunger for silver, it has been exacerbated by supply constraints of the metal. More than 60% of demand of silver stems from industry and it is rising steadily. Experts predict that the supply problems could continue this year.
How high will silver go in 2025?
Silver is now regarded as one of the better-performing assets this year. There have been reports that silver prices have risen by more than 11% in 2025. In 2024, it rose 15%. Reports have stated that silver could cross Rs 1 lakh per kg. On April 28, the price of silver ready bar 999 (per kg) was Rs 96,900 while that of portion was Rs 97,000. In India, silver prices could rise Rs 110,000–125,000 per kg in the medium to long term. Experts also point to the gold-silver ratio. It is facing resistance at the 92.50 level. A decline in this ratio indicates relative strengthening of silver versus gold.
“A high gold-to-silver ratio should help silver, as some investors may view the white metal as undervalued. Also, expected US interest rate cuts, along with elevated economic and geopolitical uncertainties, should continue to fuel gold and silver investment,” the Silver Institute has mentioned in its World Silver Survey 2025.
Macro-economic tailwinds
The macro-economic tailwinds are also helping silver this year. One, several central banks are easing monetary policies. The correlation is easy — if interest rates go down, bank accounts and bonds lose their attraction and drive investment towards silver, which has a safe-haven appeal. Another factor pushing up the silver prices is a weakening dollar index. Usually dollar and silver prices are inversely related — whenever one rises, the other goes down. The US Fed is expected to cut interest rates this year more than once and it will help boost silver prices.
Continuing trade uncertainties and geo-political tension in different parts of the world will keep up the safe-haven demand. The US Fed’s anticipated rate cuts in 2025 will also keep an upward pressure on silver prices. Lower interest rates tend to male the dollar weak, rendering silver more attractive to international investors.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, any form of alternative investment instruments and crypto assets.)
Silver has always played second fiddle to gold which has captured popular imagination, and headlines, more than the white precious metal. But market experts are predicting that in 2025, silver could steal a march over gold. Read on to know why. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
