Even as stock markets struggle to eke out gains, the asset that has delivered big returns is Gold. Not surprisingly, the buzz is all about gold.
In all this excitement, Gold’s close cousin, Silver, is not getting much press. But the fact is that Silver is not falling behind in the race to become one of the best-performing asset classes in 2025. Gold is up over 40% in the last one year, while silver is up almost 34%.
Currently, how do the prices stack up in gold and silver? Silver is currently around $33 an ounce while Silver spot price in India is around Rs 1 lakh per Kg. The gold rate today is around US$ 3,030 an ounce. In India meanwhile, the price is Rs 88,500 per 10 grams.
Given these stupendous returns, the questions that are continuously asked are these –
What is behind the rise in prices of these two precious metals – gold and silver? And will the shine continue?
First, let’s see why silver has been on the rise.
Bullishness in Silver
For the fifth consecutive year, demand for silver exceeds supply. Global silver demand is expected to remain broadly stable in 2025 at 1.20 billion ounces, while the total global silver supply is forecast to grow by 3 percent in 2025 to an 11-year high of 1.05 billion ounces. So, there’s a gap as demand is exceeding supply. This mismatch is good news for silver prices.
But, where’s the demand coming from?
Two big factors are being cited for silver prices shooting up.
Firstly, increased industrial activity.
And secondly, rising interest in silver as an investment option.
The silver market is relatively small with a turnover of around $30 billion annually. And that’s why a minor shift in supply has a big impact on the demand and the price.
The increasing demand for silver from green technologies in the industrial sector, coupled with limited supply growth, makes silver a favourable option in the rapidly evolving economic landscape.
Will the price of silver increase in 2025 and beyond? Here’s a simple thumb rule or a ‘silvery hack’ to know this – Keep an eye on the gold-silver ratio.
Source: Google Finance
What is the Gold-Silver Ratio? » Read More
