The year 2025 has witnessed a historic and blistering rally in silver, propelling the white metal into a financial stratosphere previously dominated by a handful of stellar stocks. On Monday, silver prices crossed the monumental threshold of Rs 1.8 lakh per kilogram, cementing its status as a standout performer with staggering returns of 103% so far this year.
Silver Outshines Gold and Equities
An ET analysis reveals that this explosive performance places silver in an exclusive league, alongside just 20 multibagger stocks in the market. Once primarily viewed as a hedging asset, silver has now decisively eclipsed not only gold but also the vast majority of shares traded on the BSE and NSE in 2025. The momentum, analysts assert, shows little sign of abating.
Ponmudi R, CEO of Enrich Money, expects domestic prices to test the Rs 1,81,000–Rs 1,85,000 range in the near term. He points out that March futures are hovering near a crucial resistance band of Rs 1,79,000–Rs 1,80,000. A confirmed breakout above this level, he notes, could fuel the next significant leg of the rally.
Echoing this bullish sentiment, Anuj Gupta, Director at Ya Wealth Global Research, projects silver to end the year near Rs 1,82,000. On Monday, MCX silver futures settled at Rs 1,81,461 after scaling a fresh lifetime peak of Rs 1,82,998.
The Elite Multibagger Club: Stocks That Kept Pace
Silver's meteoric rise unfolds against a backdrop of broader market volatility. An ET screening of stocks with a market capitalisation above Rs 1,000 crore highlights a select group that has delivered exceptional gains this year. Topping the list is Elitecon International, an FMCG major, with a phenomenal surge of 746%. It is followed by Kothari Industrial Corporation (561%) and its group's fertiliser arm (376%).
A long roster of smallcap stocks has also delivered multibagger returns, ranging from 108% to 334%. This list includes names like Cupid, Indo Thai Securities, NACL Industries, Force Motors, ASM Technologies, Lumax Industries, GRM Overseas, Apollo Micro Systems, and CarTrade Technologies, among others. In the midcap space, L&T Finance (130%) and Aditya Birla Capital (101%) have more than doubled investor wealth.
Drivers of the Rally and Future Outlook
The stellar run in silver is underpinned by a potent mix of macroeconomic factors. Hopes of a US Federal Reserve rate cut and a concurrently weakening US Dollar Index (DXY) have provided strong tailwinds. The DXY has fallen 0.82% in the past five sessions and is down 8.5% year-to-date. A Reuters report cited BofA Global Research forecasting a 25-basis-point Fed cut in December 2025, with two more expected in 2026.
Rate cuts typically benefit non-yielding assets like silver and gold. Additionally, expectations of stronger industrial demand have enhanced silver's appeal. On the domestic front, prices have been bolstered by a weakening rupee, which has depreciated 4.6% against the US dollar, keeping import costs elevated.
Historically, silver's last standout year was 2020 with 46% returns. Between 2022 and 2024, it gained 11%–17%. Looking ahead, Anuj Gupta believes silver will continue to outpace gold, with prices potentially touching Rs 1,90,000 by March 2026 and Rs 2 lakh by Diwali 2026.
From a technical perspective, Apurva Sheth, Head of Market Perspectives at SAMCO Securities, observes that silver has broken out of a consolidation phase between $46 and $54, with the broader uptrend firmly intact. He believes current conditions point to the strong possibility of another sustained upward move.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
