Silver Beats Gold in 2025 with 102% ETF Returns

In 2025, silver has emerged as the top-performing investment asset, delivering an impressive 102% return to investors through Exchange-Traded Funds (ETFs). This remarkable performance has positioned silver ahead of traditional assets like gold and equities. The white metal is now trading near ₹1.8 lakh per kilogram in the spot market, with analysts projecting potential highs of ₹2.46 lakh per kilogram in the long term.



Factors Driving Silver's Surge

Industrial Demand and Technological Advancements

Silver's industrial applications have significantly increased, driven by advancements in green technologies such as solar energy, electric vehicles (EVs), and 5G infrastructure. The metal's unique properties make it indispensable in these sectors, leading to a surge in demand.

Supply Constraints

Approximately 70% of global silver production is a by-product of mining other metals like zinc, lead, copper, or gold, limiting output flexibility. This has resulted in a persistent supply deficit, with the Silver Institute projecting a shortfall of around 118 million ounces in 2025.

Investment Interest

Investor enthusiasm for silver has grown, with notable endorsements from financial figures like Robert Kiyosaki, who predicts the metal could reach $75 per ounce. This increased interest has further fueled silver's price rally.


Market Outlook

Analysts remain bullish on silver's future prospects. Motilal Oswal projects that silver prices could consolidate between $50 and $55 per ounce over the coming months, with potential peaks at $75 per ounce by 2026 and $77 by 2027 on COMEX. Assuming an average USD/INR exchange rate of 90, this translates to ₹2.4 lakh by 2026-end and ₹2.46 lakh domestically.

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