Discover why silver is stealing the spotlight in 2025, with soaring prices, rising demand, and new investors. Learn what’s driving this metal’s breakout year!
- Gold Prices Dip Slightly but Hold Steady Amid Strong US Dollar and Global Risks
- Federal Reserve is expected to leave the policy rate unchanged for the fourth consecutive meeting
- MCX Silver Trading Tips for Today (Wednesday, June 18, 2025)
- Gold Trading Tips for Today (June 18, 2025)
- According to Neal bhai, the target price of silver is $60, Patience is required.
Silver, often called the “poor man’s gold,” is having a breakout year. It’s no longer just gold’s cheaper alternative—silver is now a star in the metals market. With prices hitting record highs, growing demand from industries, and even central banks showing interest, silver is proving it’s a smart choice for investors. Let’s explore why silver is shining so brightly in 2025.
Silver Declines on Profit
Silver prices fell around 2% to $35.60 per ounce on Friday, marking a third consecutive session of losses as traders took profits following a sharp rally that pushed prices to over 13-year highs.
Investors also sold precious metals to cover losses elsewhere, as an escalating conflict in the Middle East spurred widespread selloffs.
Additionally, the US Federal Reserve held interest rates steady this week and reiterated a cautious, data-dependent approach, warning that President Donald Trump’s new tariffs could fuel inflation and complicate the economic outlook.
On the supply front, sentiment was further pressured by confirmation of a major discovery in Argentina—one of the largest copper, gold, and silver deposits in three decades—estimated to hold 13.2 million tons of copper and over 80 million ounces of gold and silver combined.
Silver Prices Are Soaring
Silver prices have climbed to new peaks, exciting investors worldwide. On India’s Multi Commodity Exchange (MCX), silver for July delivery reached an all-time high of Rs 1,09,748 per kilogram. September contracts went even higher, touching Rs 1,11,000 per kilogram. That’s a 25% jump from its low of Rs 88,050 per kilogram earlier this year!
Globally, silver is holding strong at around $36.72 per ounce, close to a 13-year high of $37.40 per ounce. Even after a slight dip in India to Rs 1,08,300 per kilogram on June 19, experts say this is just traders taking quick profits, not a sign the rally is over.
Meanwhile, gold prices have weakened a bit. Gold futures for August delivery dropped to Rs 99,329 per 10 grams, down 0.2%. This difference has made silver look even more attractive compared to gold.
What’s Fueling Silver’s Rise?
Silver’s surge comes from a mix of strong demand, limited supply, and global events that make it a safe choice for investors. Here’s what’s driving the excitement:
Growing Industrial Use
Silver isn’t just a shiny metal for jewelry—it’s a key ingredient in modern technology. From solar panels to electric vehicles (EVs), electronics, and 5G networks, silver is in high demand. In 2024, industries used a record 680.5 million ounces of silver, but mines can’t keep up. Experts predict a shortage of 117.6 million ounces in 2025, pushing prices higher.
Safe-Haven Appeal
With tensions rising in places like the Middle East and uncertainty about inflation, investors are turning to safe assets like silver. Its role as both a precious metal and an industrial resource makes it a unique pick.
The Gold-Silver Ratio
The gold-silver ratio shows how many ounces of silver it takes to buy one ounce of gold. Earlier this year, it was over 100, meaning silver was undervalued. Now, it’s down to about 91, suggesting silver is catching up. If the ratio drops to its long-term average of 70, silver could hit $48 per ounce, even if gold prices stay the same.
Who’s Investing in Silver?
Silver’s low price compared to gold (which is over Rs 99,000 per 10 grams) makes it appealing to younger investors, like millennials and Gen Z. They see it as an affordable way to invest in both precious metals and growing industries like green energy.
Big players are joining in too. Silver exchange-traded funds (ETFs) added 2.2 million ounces in just one day last week. Even Russia’s central bank plans to buy $535 million worth of silver over the next three years—a rare move that shows silver’s growing importance.
Challenges in the Silver Market
Silver’s supply has been tight for years. Unlike gold, much of the silver used in industries is consumed or destroyed, making it harder to meet demand. Some experts also point to issues in the futures market, where a few big banks have kept prices low for decades. But now, the physical shortage of silver is starting to take control, driving prices up.
Should You Invest in Silver?
Experts are optimistic about silver’s future but suggest being smart about it. Kaynat Chainwala from Kotak Securities says taking some profits now is wise, but long-term investors should buy during price dips. She predicts silver could reach $40 per ounce this year and $50 by the end of 2025. In India, MCX silver might hit Rs 1,25,000 per kilogram.
Brad Smoling, a market expert, recommends owning physical silver or shares in trusted silver mining companies. He advises avoiding some ETFs or paper investments that may not fully capture silver’s value.
Silver’s Bright Future
Silver is no longer in gold’s shadow. With its role in green technology, limited supply, and growing interest from investors and institutions, silver is becoming a must-have asset. Whether you’re looking for a safe investment or a way to bet on the future of tech, silver’s story is just getting started.
