Key Points
- Silver prices in India are soaring, with experts predicting a rise to ₹1.25–1.30 lakh per kg by Diwali 2025.
- The surge is driven by global technical breakouts and strong industrial demand, particularly in clean energy, 5G, and electric vehicles.
- Silver has outperformed gold in recent months, delivering around 24% returns in just 60 days.
- The gold-silver ratio remains high at 91, suggesting silver is still undervalued relative to gold.
- The Silver Institute reports a fifth consecutive year of global supply deficit, further supporting price increases.
New Delhi: Silver is capturing the spotlight in Indian commodity markets, with prices surging to unprecedented levels. Currently trading at ₹1,09,100 per kilogram, silver has shown remarkable momentum, prompting market experts to forecast a further climb to ₹1.25–1.30 lakh per kg by Diwali 2025.
Global Factors and Technical Breakout
The rally is not limited to Indian markets. Internationally, silver recently touched $37 per ounce a significant technical breakout that has energized investors worldwide. Analysts point to easing trade tensions between the US and China, which has spurred industrial activity and demand for silver.
Industrial Boom Drives Demand
Silver’s role in modern industry is a key driver of its rising value. Experts estimate that 53–56% of global silver consumption now comes from industrial sectors, notably clean energy projects, 5G technology infrastructure, and the rapidly expanding electric vehicle (EV) market. This surge in industrial usage is putting sustained upward pressure on prices.
Investment Appeal: Silver Outshines Gold
Silver’s investment appeal is also on the rise. The gold-silver ratio, currently at 91, indicates that silver is historically undervalued compared to gold making it an attractive option for investors seeking higher returns. This ratio rarely stays above 90 for long, and a correction typically results in a sharp increase in silver prices.
Supply Deficit Fuels Price Momentum
According to the Silver Institute, 2025 marks the fifth consecutive year of a global silver supply deficit. With demand outstripping supply, the market is experiencing a tightening that is likely to support high prices in the coming months.
Strong Returns and Positive Outlook
In just the past 60 days, silver has delivered an impressive 24% return significantly outperforming gold and other traditional investment options. Experts believe that, given the ongoing supply constraints and robust industrial demand, silver’s upward trajectory is set to continue, with prices likely to reach new highs by Diwali.
