The year 2025 has witnessed a historic and relentless bull run in silver, with the white metal scaling unprecedented peaks and stunning global markets. What began as an under-the-radar asset has transformed into one of the top-performing investments of the year, decisively outperforming gold and most major asset classes amid global economic shifts.
A Meteoric Rise: From Obscurity to Centre Stage
At the beginning of 2025, few investors anticipated silver's dramatic ascent. However, the metal has mounted a sharp rally, marking one of its strongest annual performances in over four decades. On the Multi Commodity Exchange (MCX), silver was quoted at ₹87,233 per kilogram around the same time last year. It has since skyrocketed by 175% to trade at ₹2,39,787 per kg, positioning 2025 for the best annual surge since 1979. Notably, silver's gains are nearly double the 80% rise seen in gold during the same period.
The blistering rally gained serious momentum starting in April, following US President Donald Trump's announcement of tariffs on major trading partners. Each subsequent month closed at a historic high, with December emerging as a standout period. Prices have climbed nearly 40% in December alone. From the April lows, silver has advanced by a staggering ₹1,53,554 per kg. In international markets, the spot price has vaulted from $28.90 to $79.31 per troy ounce.
Key Drivers Behind the Silver Tsunami
Analysts point to a powerful confluence of factors fueling this unprecedented rally. The primary catalyst is a growing concern over persistent supply shortages against a backdrop of robust industrial and investment demand.
Global silver supply has failed to meet demand for seven consecutive years, creating a structural market deficit. This deficit is forecast to extend into a fifth straight year in 2025. Unlike gold, silver has extensive industrial applications, with solar panel manufacturing being a major consumption driver. Simultaneously, investment demand—through physical bars, coins, and exchange-traded funds (ETFs)—continues to swell, reflecting heightened confidence in the metal's value. Sentiment received a further boost from silver's recent inclusion in the US critical minerals list.
Reports also indicate that global central banks, after years of aggressive gold accumulation, are now turning their attention to silver. Purchases by some central banks in international markets are providing additional support to prices. Furthermore, a weakening US dollar, which has slumped to its lowest levels since early October on expectations of further Federal Reserve rate cuts, has made dollar-priced silver cheaper for holders of other currencies.
Analysts Bullish on Outlook for 2026
Market experts, having repeatedly raised their forecasts, remain optimistic about silver's trajectory into the new year.
Ponmudi R, CEO of Enrich Money, noted that MCX silver extended its sharp advance to ₹2,40,935 per kg, rising nearly ₹30,000 in the past week alone on global cues and tightening supply. He identified immediate support in the ₹2,23,000–₹2,20,000 per kg zone, which could attract buying on dips. Ponmudi added that a sustained hold above ₹2,40,000 could accelerate the rally towards ₹2,50,000–₹2,60,000 in the coming months. He advocates a buy-on-dips strategy for 2026, citing strong fundamentals.
NS Ramaswamy, Head of Commodity & CRM at Ventura, told Mint that silver prices could surge another 18% from current levels. He highlighted that silver historically outperforms during periods of strong global economic growth, thanks to its significant industrial usage.
Disclaimer: This story is for educational purposes only. The views and recommendations are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
