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Should I invest in silver or not? This is one of the most frequently asked and searched investment questions in 2025 because silver has quietly become the star of the year, soaring more than 52% YTD (as of October 20, 2025). And over the last two decades, it’s gained 668.84%, showing it’s no longer just gold’s little brother.
Gold, of course, still holds its ground up nearly 1,200% from ₹7,638 in 2005 to over ₹1,25,000 in October 2025, with 56% return YTD in 2025. You will see the gains are high from gold, but silver is making big headlines.Â
But what’s changed? Why are so many investors suddenly looking at silver ETFs instead of sticking to gold or other traditional assets? Let’s break it down to what’s really driving this shift.
Silver’s Price Performance: A Breakout After Years of Consolidation
After spending nearly a decade stuck in a broad consolidation range, silver has finally broken out and in a big way. Globally, prices have shot past US$50 per ounce, while in India, the rally has been even stronger. MCX silver futures hit record highs above ₹1,60,000 per kg and spot prices in the physical market climbed close to ₹1,80,000 per kg. Many analysts now refer to this as a defining moment for bold silver price prediction in India trends.
Here’s how silver performs against gold and Indian equities over the same period:
| Asset | Return (Oct 2024 – Oct 2025) |
|---|---|
|
Silver |
+80% |
|
Gold |
+60%
|
|
Nifty 50 |
+2% |
What’s Powering Silver’s Global Rally?
The recent surge in silver investments isn’t just about inflation or its reputation as a safe haven asset several other factors are also fueling this momentum, such as:
Silver is no longer just valued as a precious metal, it’s now a critical industrial material. Nearly 60% of the world’s silver demand comes from industries such as solar energy, electric vehicles, electronics, 5G and semiconductors.This is one of the strongest drivers behind rising interest in bold silver long term returns.
Let’s see how each of these sectors is boosting silver’s demand.
- Solar Power: Silver paste plays a key role in solar panels, helping PV cells conduct electricity efficiently. Today, the solar industry uses almost 20% of the world’s silver and this demand is set to rise sharply as more countries push for clean energy and decarbonization.
- Electronics & 5G Technology: Beyond the clean energy boom, silver has become a backbone of modern technology. It’s a critical material used in smartphones, semiconductors, 5G networks and AI systems. As technology continues to evolve, each innovation adds fresh demand for silver, boosting its attraction among those who are exploring the benefits of silver investment..
- Electric Vehicles: Global shift to electric vehicles (EVs) has opened another source of demand for silver. Each EV uses about 25–50 grams of silver in its wiring, sensors and electronic circuits. Silver’s exceptional conductivity makes it essential for EV batteries, electrical systems and safety components. As EV market is expanding rapidly, annual silver demand from this sector is expected to surpass 90 million ounces.
One of the strongest factors supporting silver’s long term bullish trend is the growing structural deficit in its physical market which is an important aspect for investors researching why to invest in silver.
Unlike gold, most of the world’s silver, nearly 70–75% is produced as a by-product of mining other metals such as lead, zinc and copper. This means silver supply cannot quickly increase even when demand rises, since it largely depends on the output of these base-metal mines. Only a small portion of global production comes from primary silver mines.
For several years now, global silver demand has consistently exceeded total supply from both mining and recycling. In 2024, the market recorded its fourth consecutive annual deficit, estimated at 148.9 million ounces (Moz). Although that was 26% lower year on year, it still represented a shortfall of roughly 15% of total global supply.
Between 2021 and 2024, the cumulative deficit reached an extraordinary 678 Moz, equivalent to nearly ten months of worldwide mine output. Looking ahead, forecasts suggest that 2025 will mark the fifth consecutive year of deficit which is a key reason for rising interest in silver vs gold returns 2025.
On August 26, 2025, U.S. government revised its Critical Minerals List, adding six new minerals, including silver. This update highlights US’s growing acknowledgment of silver’s expanding role beyond jewelry and investment.
Adding to the bullish sentiment, Saudi Central Bank announced new investments in the iShares Silver Trust (SLV), world’s largest silver ETF and Global X Silver Miners ETF (SIL). This reflects Saudi Arabia’s confidence in silver’s long term value, both as a precious asset and a key industrial metal.
This is only the second instance of a central bank moving into silver, following Russian Central Bank’s decision in FY24 to build physical silver reserves. While central banks traditionally favor gold, Saudi Arabia’s entry into silver backed ETFs signals a broader institutional shift and supports the growing momentum of silver-backed ETFs inflows.
When inflation rises or the economy slows, investors tend to seek assets that can preserve value. Silver stands out as both an industrial and a safe haven metal, offering a unique balance between growth and protection.
In 2025, with persistent inflation, rising geopolitical tensions and market volatility, silver has re-emerged as a reliable hedge similar to gold, but far more affordable. It not only helps protect portfolios from currency depreciation and equity market swings, but also Silver investment benefits are due to industrial demand, giving it a dual advantage that pure monetary assets lack.
Not everyone can afford gold, especially with prices hovering around ₹1,30,510 per 10 grams (as of 20 October 2025). Silver, meanwhile, remains far more accessible at about ₹1,72,000 per kilogram on the same date. This affordability makes silver an attractive entry point for new and small investors looking to begin their journey in precious metals.
Even a modest allocation to silver can help diversify a portfolio and provide exposure to both industrial growth and safe haven protection without requiring a large investment.Â
One of the easiest and most convenient ways to invest in silver today is through Silver Exchange-Traded Funds (ETFs). These funds track silver prices and trade on stock market just like shares. Investors don’t have to worry about storage, purity or security and can buy or sell anytime through their Demat account. This has led to a sharp rise in searches for best silver ETFs India.
In India, Silver ETFs were first launched in 2022 and by 2025, their popularity has surged. HDFC Silver ETF Fund of Fund (FoF) led the pack in 2025 with returns of 109.85%, followed closely by Axis, Aditya Birla Sun Life, Nippon India and UTI Silver ETF FoFs, all delivering returns between 105.06% and 109.50%.
Strong performance has translated into robust inflows. By mid 2025, global silver backed ETFs had added nearly 95 million ounces surpassing total inflows for the entire previous year and pushing total holdings to an all time high of about 1.13 billion ounces, valued at over US$ 40 billion.
Closer to home, Indian Silver ETFs managed approximately ₹135 billion in assets as of September 2025, marking a sharp rise in participation and reflecting a clear shift in investor preference toward silver as an accessible and high potential asset class.
Analysts note that the rupee’s gradual depreciation against US dollar has further supported silver’s returns for Indian investors. Since silver is globally priced in US dollars, a weaker rupee translates into higher local prices, effectively amplifying gains for investors in India.
Final Words
Both gold and silver play important roles in a well balanced portfolio. However, in 2025, silver investment stands out driven by its strong industrial demand, affordability and inflation hedging potential. For effective portfolio diversification, investors can consider Silver ETFs for convenience or physical silver for tangible ownership. Whichever route you choose, stay informed, consistent and aligned with your financial goals and risk tolerance.
FAQs
Why is silver outperforming gold in 2025?
Silver’s 2025 rally stems from rising industrial demand in solar and EVs, along with investors seeking affordable alternatives to gold amid inflation and economic uncertainty.
Should I buy silver or gold?
Silver offers higher growth potential and volatility, while gold provides stability and inflation protection. Diversifying between both metals helps balance risk and return effectively.
What are the risks of investing in silver?
Silver prices fluctuate sharply with industrial demand, economic shifts and technology cycles. It’s more volatile than gold, requiring careful risk assessment before investing.
Are silver ETFs a safe way to invest?
Yes. Silver ETFs offer regulated, transparent exposure without storage hassles. SEBI oversight ensures safety and 2025 inflows highlight rising investor confidence.
Is silver a better inflation hedge than gold?
Gold remains the strongest inflation hedge. Silver’s effectiveness depends on industrial demand less stable but offering higher upside during economic expansion.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
