Gold-Silver Price: Gold pales in front of the shine of silver, this year the prices have increased by more than 130 percent.

New Delhi. Due to safe investment options amid global uncertainties and increasing demand in select industries, this year silver has left behind traditional investment options gold and stock market in terms of returns. The situation has become such that where gold has given around 70 percent return, silver has increased by more than 130 percent. Experts say that silver is expected to rise by 15 to 20 percent next year amid expectations of further policy rate cuts by the US Federal Reserve.

According to All India Bullion Association, silver prices in Delhi on Monday rose by Rs 10,400 per kg to an all-time high of Rs 2,14,500 per kg (including all taxes). The price of silver on January 1 this year was Rs 90,500 per kg. In this way, silver has increased by Rs 1,24,000 i.e. 137 percent.

Anand Rathi Share & Stock Brokers Ltd. about the rise in silver. Naveen Mathur, Director (Commodity and Currency), ICICI Bank, told a news agency, “In the international spot market, silver has so far given returns of more than 130 per cent, while with the rupee falling by more than five per cent against the dollar this year, the returns in MCX futures prices have so far reached about 138 per cent.”

He said, “One reason for this surge is that a section of investors are investing in alternative investment products against government bonds and currencies, which has increased the demand for investment in the white metal. Silver prices have also increased due to increase in industrial demand and reduction in supply in the market for the fifth consecutive year.

Mehta Equities Ltd. Rahul Kalantri, vice president (commodity), said, “The rise in silver prices is not the result of speculation but structural factors. Industrial demand continues to lag behind supply. “The increasing demand in new areas like Artificial Intelligence (AI), EV and clean energy is the main reason for the price increase.”

“Apart from strong industrial demand, sustained inflows into ETFs (exchange traded funds), higher physical offtake and investors increasing their exposure to commodities also supported the prices,” he said. Another sign is a sharp decline in the gold-silver price ratio, which indicates increasing risk appetite.” A sharp decline in the gold-silver ratio means that silver prices are rising faster than gold prices.

This indicates that the value of silver is increasing compared to gold and provides a better investment opportunity. If we talk about returns, this year gold has given returns of about 72 percent till December 19, whereas in case of equity market, Nifty 50 and Nifty 500 indices have given returns of 7.0 percent and 5.1 percent respectively.

In response to a question related to demand and supply, Mathur, citing the estimates of the Silver Institute, a global body representing the silver industry, said that for the fifth consecutive year, there is a shortage of silver supply of about 95 million ounces (one ounce is equal to about 31.1 grams). This shortage will continue to be the reason for further positive growth in silver prices in the coming years. But industrial demand was also a major reason for higher silver prices in 2025 and this is expected to provide strong support to the silver market next year too.

According to experts, with economic activity and inflation persisting, the possibility of increased demand in industries like solar devices and electric vehicles (EVs) may continue to shine in silver next year and it seems to be becoming a safe investment option like gold. Asked about the state of silver next year, Kalantri said, “The long-term outlook for silver remains positive due to strong industrial demand, limited supplies and favorable technical trends.

However, the target of 15 to 20 percent growth for 2026 is achievable. However, investors should be prepared for volatility and intermittent reforms, he said. A disciplined, phased investment approach and professional financial advice is essential before making any investment decisions.”

When asked how appropriate it is to invest in silver at present, Mathur said, “Silver has seen exceptionally high returns this year, so it is not right to expect similar returns next year as well.” He said, “Investment in precious metals should continue in 2026 also but this investment should be done in a phased manner only when the prices fall by five to eight percent.” Overall, additional returns of 20 to 25 percent over current levels can be expected in the first half of 2026.”