Hyderabad: In a stunning turn of events, silver has emerged as the star performer of 2025, leaving gold far behind to become the most rewarding investment of the year. Silver Exchange Traded Funds (ETFs) have delivered an impressive average return of 102% so far, significantly outpacing all traditional asset classes. A combination of booming industrial demand and tight global supply has propelled the white metal to record levels, with prices now hovering around ₹1.8 lakh per kilogram in the spot market.
Market experts anticipate that silver’s upward momentum could continue, projecting long-term targets as high as ₹2.46 lakh per kilogram. In comparison, gold ETFs have gained only 63%, while benchmark equity indices such as the Sensex and Nifty have managed modest returns of just 6–7% this year.
The rally in silver has delivered near-unprecedented profits for investors. In less than a year, prices have almost doubled — climbing from ₹89,700 per kg at the end of December last year to ₹1,79,000 per kg — a jump of nearly 99.5%. Analysts attribute this surge to a blend of global economic factors and shifting investment trends.
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One major driver has been heightened trade tensions between the United States and China, which boosted demand for safe-haven assets like gold and silver. However, what truly set silver apart was the resurgence of China’s economy and its expanding renewable energy initiatives, both of which rely heavily on industrial silver.
Adding to the rally, the London bullion market reported a historic shortage of silver supply, creating an imbalance between global demand and availability. This scarcity triggered a worldwide rush toward alternative bullion markets, amplifying the price surge even further.
According to industry reports, the global silver market has been running a structural deficit for the past four consecutive years, and 2025 is expected to mark the fifth year in a row — with supply shortfall estimates at 21%. The timing of this shortage, coinciding with India’s festive season, has naturally intensified domestic demand.
Should You Invest in Silver This Dhanteras?
Investment strategists are urging caution. While they acknowledge silver’s strong long-term potential, they warn that current prices are already at record highs. “Investors should avoid aggressive buying at these levels,” analysts advise, pointing out that the recent rally has been driven partly by US policy shifts, tariff changes, and expectations of lower Federal Reserve interest rates.
In essence, silver’s meteoric rise has turned it into 2025’s most talked-about investment story. But experts agree on one thing — while the white metal may continue to glitter in the long run, smart investors will let patience, not impulse, guide their next move.