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Silver’s outlook as an investment remains strong, driven by rising demand from green energy and electrification, with analysts predicting prices could climb another 20%
In 2025, silver reached record levels, over 53 US dollars per ounce, an 85% increase so far this year. (Representative/Shutterstock)
Silver, once deemed a secondary or less valuable precious metal, has recently become a significant attraction. Driven by strong industrial demand, its prices have surged to unprecedented heights. The rising demand for silver indicates it is now not just a monetary asset but a crucial industrial commodity for future technology and energy.
This trend suggests that silver’s price will be influenced not only by its traditional association with gold but also by its industrial applications. This could potentially lead to even higher prices in the future.
Silver’s Industrial Demand
Today, silver’s appeal lies in its dual role as a precious metal and an industrial necessity.
Solar and Photovoltaics: The solar industry is the largest consumer of silver. In 2024, the consumption of silver metal increased by 19 percent and silver paste by 85 percent.
Electronics, semiconductors, and chips: Silver’s excellent conductivity makes it ideal for printed circuit boards, connectors, and sensors. As the use of 5G, AI, and IoT grows, so will the demand for silver in technology.
Electric vehicles and batteries: Electric vehicles require more complex wiring, sensors, and stability systems, many of which use silver. Its role in batteries and EV electronics is also increasing.
Jewellery, silverware, and coins: Traditional uses continue. During festivals and in markets like India, the demand for jewellery and gifts still constitutes a significant part of silver consumption.
Medical and healthcare use: Silver is used in antimicrobial coatings, wound dressings, and medical devices because of its germ-killing properties, increasing its demand in healthcare.
This industrial demand is making people in India view silver more as an investment asset than just a traditional gift.
Silver Outpacing Gold
Silver’s recent rally has been extraordinary. In 2025, it reached record levels, over 53 US dollars per ounce, an 85% increase so far this year, much higher than gold. Silver’s smaller market size and heavy industrial use make it more volatile and sensitive to demand changes than gold. Today’s price rise is driven by fundamentals, not just speculation.
Bank And Sovereign Buying
One interesting development is that central banks and sovereign entities now see silver as a reserve or strategic asset. Russia has reportedly allocated significant funds for silver in its reserve buying programme. Saudi Arabia’s central bank has entered the silver market and bought shares in silver ETFs like SLV.
Analysts say that while central banks have long bought gold, this shift to silver could give it recognition as an investment asset beyond retail markets. If more countries adopt silver, it could change how the metal is viewed.
Silver As An Investment Asset
Retail and institutional investors are also boosting demand. There is record investment in silver ETFs and funds. In India, Nippon India Silver ETF recently crossed Rs 10,000 crore in AUM, showing growing trust in this format. Some funds have stopped new investments due to supply shortages and rising premiums.
UTI AMC has halted new investments due to difficulty sourcing physical silver. Physical demand for coins, bars, and silverware is rising, especially during festivals or market stress. As more people see silver as an investment, demand could rise even more.
What Does The Future Look Like?
Silver’s future as an investment asset looks promising, especially with the global trends of green energy and electrification gaining momentum. Forecasts are optimistic, with some analysts expecting silver prices to rise another 20 percent. However, silver remains quite volatile. The following factors could negatively affect sentiment:
Macroeconomic shocks: Major changes or uncertainty in the global economy.
Interest rate hikes: Sudden increases in rates by central banks.
Unexpected supply changes: Unexpected disruptions in mining or stock.
This analysis is not just speculation but highlights the real factors behind the complex nature of silver’s rising demand.
November 19, 2025, 16:00 IST
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