Silver prices are projected to surpass gold in 2025, propelled by a persistent supply deficit and rising industrial demand, according to a report by global investment firm WisdomTree.
The precious metal is expected to gain 23 per cent over the year, outpacing gold’s forecasted 17 per cent increase.
“Silver will outpace gold, gaining 23 per cent over the coming year compared to gold’s projected 17 per cent increase (Q4 2024 to Q4 2025),” the report stated.
The firm remains optimistic about silver’s prospects, citing structural deficits and robust industrial demand as key drivers of its anticipated rally.
“We remain optimistic about its potential, with supply deficits and increasing industrial demand acting as strong tailwinds,” the report added, addressing speculation over silver’s changing fortunes in 2025.
According to WisdomTree, silver has faced supply shortages for four consecutive years, with 2025 likely to mark the fifth.
These ongoing deficits have depleted above-ground inventories, though substantial reserves remain in investor holdings.
However, investors are demanding higher prices to release these stocks into the market.
Soaring industrial demand
Silver’s industrial demand has surged to record levels, bolstered by increased usage in photovoltaic (solar panel) applications, 5G technology, and automotive electronics.
The report predicts another record-setting year for photovoltaic installations in 2025, further boosting silver demand.
Additionally, technological advancements have led to the mass production of higher-efficiency N-type solar cells, which require greater silver content.
Also read: Gold slips below ₹89,000-mark on muted demand
The expansion of data centres and artificial intelligence applications is also expected to fuel demand in 2025.
The automotive sector, meanwhile, continues to drive silver consumption with its growing reliance on electronic components and investments in battery-charging infrastructure.
These factors collectively reinforce silver’s rising industrial utility and economic importance.
Silver’s valuation and market trends
Silver prices in international markets have experienced an uptick, driven by industrial demand and global economic uncertainties.
Until mid-December 2024, silver was on track to outperform gold.
However, a sharp contraction in the final two weeks of the year allowed gold to edge ahead, closing 2024 with a 27 per cent gain, while silver finished with a 21 per cent increase.
Historically undervalued relative to gold, silver saw the gold-to-silver ratio exceed 90 in January 2025 before beginning to decline.
“Historically, this ratio has faced resistance around 92, followed by sharp corrections in silver's favour. This technical indicator suggests silver may be poised for another upward move,” the report observed.
In India, silver prices are influenced by global economic conditions, the Rupee-Dollar exchange rate, and government trade policies.
The price of silver per kilogram has reached Rs 1,03,000 in Indian markets, reflecting its growing demand and the broader trend of increasing valuations.
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