Gold prices have surged on geopolitical risks, central bank buying and its safe-haven image. But silver is riding a different wave — industrial use and short-term momentum.
Silver’s industrial demand is a major driver. Nearly 60% of its use comes from sectors like solar panels, electric vehicles, and electronics.According to Value Research, demand for solar panels alone is projected to grow by 20% this year. Supply, meanwhile, remains tight because silver is mainly mined as a byproduct.
This underinvestment has caused a deficit for five consecutive years.
Recent data shows how this played out.As per MCX futures, silver prices climbed from ₹87,578 per kg at the start of 2025 to about ₹1.05 lakh per kg by June-end — up 20.4%. Gold rose 24.95% in the same time, but silver’s sharp June rally stood out.
Analysts see more room for silver to run. “Silver is benefiting from both safe-haven buying and industrial push,” said Nirpendra Yadav, Senior Commodity Research Analyst at Bonanza. “Its dual nature makes it more volatile but also more responsive when global trends align.”
Investor interest is clear in the flows. Value Research highlights that silver ETFs saw fresh inflows, even as gold ETFs held steady.
For example, in May, silver ETFs attracted nearly ₹854 crore — almost triple the inflow into gold ETFs.
The outlook remains positive for both metals. Many analysts see silver testing $40-49 per ounce levels in the coming years.
Experts suggest staying balanced. “Silver may outperform in the near term due to its industrial base,” said Yadav. “But gold’s safe-haven status remains strong. Investors should diversify across both.”
