Silver will give 158 percent return in 2025, price will be $100: Analyst!

Silver has given an excellent return of 158 percent to investors since the beginning of 2025. At the same time, if the fall in the value of rupee against the dollar is taken into account, then at the domestic level this return increases to close to 170 percent.

Analysts said silver prices could reach $100 an ounce due to strong industrial demand, supply cuts, heavy investment in ETFs and interest rate cuts by the US Federal Reserve and expectations of further cuts.

Industry experts say the key drivers of silver demand include its industrial use in electric vehicles, solar power, semiconductors and data centres.

In addition, several years of structural supply shortages have strengthened investor confidence, along with expectations that the Federal Reserve will cut interest rates at least twice next year. Dollar weakness and geopolitical tensions are also driving demand for precious metals in sectors other than industrial uses.

Geopolitical tensions have increased due to the US blockade of Venezuelan crude oil, the war between Russia and Ukraine and the US military strike against ISIS in Nigeria. The U.S. Coast Guard this month seized a supertanker carrying Venezuelan oil under sanctions and tried to stop two more vessels belonging to Venezuela over the weekend, further escalating tensions.

The price of March contract in MCX had reached the highest level of Rs 2,32,741 per kg on Friday. Many analysts now see a target of $100 an ounce in 2026 as achievable, with most forecasting a range of $70-85 an ounce for silver next year.

A recent report from Axis Mutual Fund on the outlook for silver in 2026 warned that overvaluation could lead to outflows from ETFs or a decline in copper could also put pressure on prices.

“Overall, our outlook for silver is positive, as several favorable factors are keeping its bullish momentum going despite the rise in its price,” the report said.