Good years are called ‘golden’, but 2025 rightfully ought to be called ‘silvery’.
Even as the year draws to a close, prices of the white metal are touching new all-time highs every day. On Tuesday, silver price on the Multi Commodity Exchange (MCX) reached ₹2,16,000/kg, the highest ever recorded for the metal. Internationally, too, silver saw a record high, the price breaching $69 per troy ounce.
With the outgoing year seeing the metal doubling investors’ money, will its shine continue in 2026?
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In 2025, even gold finished second best to silver when it came to giving returns. On the first day of the year, the metal was trading at around Rs 87,500 a kg. As the year closes, the price surge is a phenomenal 133 per cent.
What made prices shoot up
There are several reasons why silver shot up this year. A key driver is the metal’s shortage in the market. The shortage comes amid high demand in industries such as electric vehicles, solar energy and electronics. Investors are also turning to silver since it is cheaper than gold.
International factors have also played a part.
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Due to uncertainty caused by the Donald Trump administration’s tariff game, silver was shipped from London to the US, creating unprecedented pressure on the market. Throughout the year, silver prices on COMEX (Commodity Exchange, Inc.) remained higher than those in London, which is a global hub for silver trading.
Silver stocks in London were affected, which in turn left an impact on other markets. To mitigate the problem, huge quantities of silver were shipped to London.
The top economies of the world — the US and China — also played a key role in silver’s growing shine. The US recently included silver in its list of ‘critical minerals’, which, according to some, could potentially lead to the imposition of tariffs.
China has also decided to curb exports of silver from January 1, 2026. The gold-silver ratio has fallen to 70, the lowest level seen in 2025, showing that big investors’ confidence in silver has grown. The gold-silver ratio indicates how many ounces of silver are needed to buy an ounce of gold. When the ratio falls, it indicates silver is showing a faster growth than gold.
Will the silver story go on?
The surge in silver prices depends on its supply. There has been a shortage of silver over the past five years. Between 70 and 80 per cent of the world’s silver is extracted from lead, zinc, copper, or gold mines.
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Economically, silver can benefit from the same factors that help gold, such as a weaker dollar, interest rate cuts by the US Federal Reserve, and increasing demand for safe-haven investments amidst global tensions.
According to Manoj Kumar Jain, Director and Head of Commodity Research at Prithvi Finmart, Mumbai, the price of silver could reach $78-80 per ounce and Rs 2.4 lakh per kg in 2026. However, he also cautioned investors, saying they should shift to gold after silver’s rise to such a level, since the yellow metal is expected to shine over the next three years.
Rajkumar Subramanian, Head of Product and Family Office at PL Wealth, Mumbai, said gold remains the most reliable safe-haven investment for Indian investors, but silver is gradually becoming a more impactful investment option linked to global development and energy transition.
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According to him, silver has a dual role. On the one hand, it is a precious metal; on the other, it is also widely used in industries. This is why interest rates, the movement of the dollar, and changes in the manufacturing sector have a more pronounced impact on silver prices.
Investment portfolios
Subramanian also said that in the Indian market, silver is no longer just a means for short-term profits. With its increasing use in industries and the rise in retail investment through ETFs and digital platforms, the white metal has emerged as an important portfolio option.
While it is more volatile than gold, it also offers greater potential for profit during a boom in the commodity market. He also said that silver is becoming an asset that can provide benefits in both economic growth and times of global uncertainty.
The article was originally published in The Federal Desh.
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