Silver outlook: This Rs 50,000 cr asset manager sees up to 20% upside in white metal; here's why
Report adds dual usage differentiates silver from traditional precious metals and connects its price movements to both global uncertainty and technological growth cycles
- Jul 29, 2025,
- Updated Jul 29, 2025 3:23 PM IST
Client Associates, which manages over Rs 50,000 crore of assets, believes that silver may rally 15-20% over the next 12–24 months. The asset manager in a report said that silver is at an inflection point. While it shares gold’s historical legacy as a store of value, it also plays a pivotal role in modern industries such as solar energy, electric vehicles, semiconductors, and 5G infrastructure.
In the past year, the white metal has gained more than 37% to Rs 1.13 lakh. The report further added that dual usage differentiates silver from traditional precious metals and connects its price movements to both global uncertainty and technological growth cycles.
Nitin Aggarwal, Director Investment Research and Advisory, Client Associates said, “Silver is no longer just a precious metal—it is a modern asset class backed by industrial relevance and historical trust that offers a compelling dual advantage. For investors seeking tactical alpha along with diversification, silver offers a unique blend of opportunity and resilience.”
It combines defensive and growth characteristics, which makes it highly relevant in today’s macro environment, Aggarwal added.
In a detailed analysis, Client Associates also highlighted that silver prices are currently supported by robust structural drivers, most notably a persistent supply-demand mismatch. 2024 marked the fourth straight year of a silver market deficit, with global supply lagging demand by around 149 million ounces. This shortfall is projected to continue into 2025, driven by expanding industrial consumption and constrained mining and recycling capacity. Even as total silver demand softened marginally in 2024 due to weakness in investment and silverware categories, industrial demand rose by 3.6% year-on-year, setting a new record for the fourth year running.
In general, silver has a low correlation with Indian equities (0.21 with the Sensex) and a moderate correlation with gold (0.72), allowing it to complement both equity-heavy and gold-heavy portfolios. Over longer horizons, gold and silver returns tend to converge, but silver offers higher short-term return potential—albeit with greater volatility and sharper drawdowns.
From a portfolio construction standpoint, Client Associates said that silver can play both a defensive and opportunistic role. While gold remains a preferred hedge in uncertain times, silver’s linkage with industrial growth makes it well-suited for tactical allocations aligned with long-term global themes like decarbonisation, digitalisation and infrastructure upgrades.
Client Associates, which manages over Rs 50,000 crore of assets, believes that silver may rally 15-20% over the next 12–24 months. The asset manager in a report said that silver is at an inflection point. While it shares gold’s historical legacy as a store of value, it also plays a pivotal role in modern industries such as solar energy, electric vehicles, semiconductors, and 5G infrastructure.
In the past year, the white metal has gained more than 37% to Rs 1.13 lakh. The report further added that dual usage differentiates silver from traditional precious metals and connects its price movements to both global uncertainty and technological growth cycles.
Nitin Aggarwal, Director Investment Research and Advisory, Client Associates said, “Silver is no longer just a precious metal—it is a modern asset class backed by industrial relevance and historical trust that offers a compelling dual advantage. For investors seeking tactical alpha along with diversification, silver offers a unique blend of opportunity and resilience.”
It combines defensive and growth characteristics, which makes it highly relevant in today’s macro environment, Aggarwal added.
In a detailed analysis, Client Associates also highlighted that silver prices are currently supported by robust structural drivers, most notably a persistent supply-demand mismatch. 2024 marked the fourth straight year of a silver market deficit, with global supply lagging demand by around 149 million ounces. This shortfall is projected to continue into 2025, driven by expanding industrial consumption and constrained mining and recycling capacity. Even as total silver demand softened marginally in 2024 due to weakness in investment and silverware categories, industrial demand rose by 3.6% year-on-year, setting a new record for the fourth year running.
In general, silver has a low correlation with Indian equities (0.21 with the Sensex) and a moderate correlation with gold (0.72), allowing it to complement both equity-heavy and gold-heavy portfolios. Over longer horizons, gold and silver returns tend to converge, but silver offers higher short-term return potential—albeit with greater volatility and sharper drawdowns.
From a portfolio construction standpoint, Client Associates said that silver can play both a defensive and opportunistic role. While gold remains a preferred hedge in uncertain times, silver’s linkage with industrial growth makes it well-suited for tactical allocations aligned with long-term global themes like decarbonisation, digitalisation and infrastructure upgrades.