How silver dethroned gold in 2025’s race for returns and why investors are rushing in

In a year that’s been packed with twists across asset classes, silver has quietly outpaced its more glamorous counterpart, gold, emerging as the top-performing precious metal of 2025 so far. As of now, silver has delivered a stunning 53% return year-to-date (YTD), while gold has clocked in with gains of 49%.

This divergence has not only surprised investors but has also shifted the spotlight squarely onto silver. Its impressive rally today took it to an all-time high of Rs 1,44,179/kg on the MCX, reinforcing its bullish momentum.

What’s driving silver’s surge?

Silver’s rally is being driven by a mix of macroeconomic and industrial tailwinds.Silver is benefiting from a trifecta of factors—safe-haven buying, industrial demand, and a weakening dollar. The demand from green energy applications, especially solar and EVs, continues to lend long-term strength to the metal.

Silver is often called poor man’s gold, but in terms of returns, it is outperforming gold by a wide margin this year. The consistent ETF inflows and tight supply conditions are also supporting factors.
While gold remains a go-to asset in uncertain times, silver is increasingly seen as a hybrid play—offering both a hedge against inflation and exposure to industrial recovery.
“Investors are flocking to silver because it has both monetary and industrial value. That dual nature is very attractive in a year of global rate pivots and infrastructure spending,” said Jigar Trivedi, Senior Analyst – Commodities & Currencies, Reliance Securities.
The rally is also gaining momentum from the options and futures segment. Silver options volumes on the MCX have seen a steady uptick in recent weeks, mirroring growing speculative interest.

How much higher can silver go?

Silver prices are expected to climb higher in the coming months, supported by both fundamental and technical indicators.

According to Jigar Trivedi, silver is poised for a strong six-month trajectory driven by global supply deficits, renewed investor interest, and robust industrial demand from sectors such as solar panels and electric vehicles.

With the U.S. Federal Reserve likely to ease rates and silver’s appeal as a safe-haven asset increasing, he anticipates a structurally bullish outlook. Trivedi notes that silver, currently trading near Rs 1,44,000 per kilogram on MCX, could move towards Rs 1,70,000 to Rs 1,75,000 per kilogram over the next six months.

Meanwhile, Rahul Kalantri, VP Commodities at Mehta Equities, highlights that silver recently touched a 14½-year peak amid supportive U.S. economic data.

He places near-term support at Rs 1,41,050 to Rs 1,41,450 and resistance at Rs 1,42,950 to Rs 1,43,800, noting that macroeconomic uncertainties, such as U.S. fiscal policies and inflation expectations, are influencing market behavior.

Also read: Silver surges ahead: Can the white metal outshine gold in India’s bullion boom?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times