In India, silver has long been regarded as the precious metal of the common man, especially for jewelry. However, its sharp rise in prices has made it increasingly unaffordable for ordinary citizens. At the same time, gold prices continue to surge, setting new records almost daily. While gold is moving toward ₹1.5 lakh per ten grams, silver has also crossed ₹2.5 lakh per kilogram, recently touching ₹2.65 lakh per kilogram.
Silver prices jumped by more than 160 percent in 2025 alone, with a sudden increase of ₹15,000 per kilogram recorded just yesterday. This steep rise is largely attributed to growing demand from industrial sectors, while supply has remained limited. Additionally, in an uncertain global economic environment, silver is increasingly being viewed as a safe investment option.
The factors driving gold prices higher are somewhat different. Gold remains a preferred safe-haven asset amid shifts in the global economic order, and the weakening of the US dollar in international markets has further enhanced its appeal. Despite rising prices, domestic demand for both gold and silver in India remains strong. Traditionally, silver demand peaks during the Diwali festival, but during the last Diwali, prices were so high that even purchasing a small ten-gram silver coin became difficult for the average buyer. Gold, meanwhile, has moved far beyond the reach of the common man.
Another key reason behind the surge in silver prices is increased investment by mutual funds worldwide, which are anticipating further gains. At the same time, rapid advancements in the solar energy sector have significantly boosted silver demand. With silver usage expanding across the growing technology sector, demand is expected to rise further. Limited supply, combined with increasing consumption, has led to a sharp and sustained increase in prices.
In January 2025, silver was priced at ₹85,913 per kilogram, but by December 2025, it had climbed to ₹2.47 lakh per kilogram. During this period, global demand for silver nearly doubled. As consumption continues to rise, particularly in countries such as the United States, silver has become increasingly attractive to global investors.
As the US Federal Reserve continues to lower interest rates, major investors in the country are finding silver investments profitable and are buying the metal in large quantities. However, this trend is not limited to the US, as even prestigious banks worldwide are considering holding silver stocks as a safe haven against fluctuations in the currency market. Silver is primarily used in the manufacture of batteries and solar panels, and the future of these industries is considered very bright, which is why investors are increasing their investments in silver. Additionally, silver is used in the technology employed in the artificial intelligence industry, which is considered a sunrise industry; therefore, the demand for silver is bound to continue increasing. Silver is used in this industry for transmission and smart grid infrastructure, so the demand for this metal will continue to rise, and due to limited supply, its prices will remain attractive in the coming years. Furthermore, silver is used worldwide in the manufacture of jewelry and coins, so its traditional demand is also likely to remain constant. Silver is produced as a byproduct of the production of other minerals. Its production has not increased significantly in the last several years. Considering this, in November of last year, the US included this metal in its list of critical and scarce metals. However, by September of the same year, the US had already accumulated a silver stock of 531 million ounces, which was 74 percent more than the previous year.
Currently, the total silver stock in the US is reported to be 449 million ounces, which is three times the traditional stock. In contrast, China imposed new restrictions on silver exports from January 1st. Due to the large silver stocks in the US, the supply of silver on the London Metal Exchange has decreased. Spot delivery has significantly reduced, and this market determines international silver prices. Therefore, as the demand for silver increases and its supply decreases, its price continues to rise. Market experts are currently reluctant to predict how long this trend will continue in the near future.
