Silver goes past gold in 2025 with record gains amid global uncertainty

Silver has emerged as the standout performer in the precious metals market in 2025, surpassing gold with substantial gains as global economic uncertainty drives investor interest. Over the past year, silver has achieved a 44% increase, while gold has risen by 41%. This marks the first time since 2011 that silver has traded above $40, reaching around $40.68 per ounce on 3 September 2025.

Market experts attribute silver's performance to several factors, including its industrial applications and investor preference for safe-haven assets amid economic volatility. Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd, noted, "Over the past month, precious metals have clearly outperformed Indian equities, with silver surging around 11% and gold rising nearly 5.8%, while the Nifty 50 slipped about 1%. The contrast reflects global investor preference for safe havens amid global risk sentiment."

The Indian rupee has played a dual role in amplifying gains for gold and silver, while negatively affecting equities. A weakening rupee has benefited domestic investors in precious metals, further enhancing their appeal during this period of financial instability.

Silver's industrial demand, particularly from the solar and electric vehicle sectors, has provided it with an extra edge over gold. "Silver gained an extra edge thanks to robust chart base buying and industrial demand from the solar and electric vehicle sectors," Kalantri added. This has been a significant factor in its recent outperformance.

The Gold/Silver ratio's downward trend has also signalled further strength for silver. Nilesh Jain, Vice President of Equity Research at Centrum Broking, stated, "The Gold/Silver ratio is in a downward channel, forming lower tops and bottoms. It has broken below its 200-day moving average, signalling more weakness." The ratio suggests silver will continue to outperform gold in the near term.

Increased global uncertainty and inflationary concerns have led to a steep jump in Indian silver prices. Aksha Kamboj, Vice President of the India Bullion & Jewellers Association, highlighted the role of both speculative buying and industrial demand in this rally, stating, "Silver is currently being traded at about ₹1,24,000 per kilogram, a strong pull-up from recent levels."

A recent proposal by the U.S. Geological Survey to add silver to the List of Critical Minerals is expected to further bolster interest in the metal. With demand anticipated to outpace supply in 2025, market analysts predict that silver prices will remain stable, maintaining their upward trajectory. This development could significantly impact the market dynamics, drawing more investors to silver as a critical asset.

Looking ahead, Kalantri suggests that the bullion market may continue to find support if the U.S. Federal Reserve implements a rate cut. "The near-term outlook suggests bullion may continue to find support if the Fed delivers a rate cut and global uncertainties persist," he remarked, indicating that silver's strong performance is likely to continue into the future.

Overall, with its dual role as both an industrial and precious metal, silver has positioned itself as a valuable asset amid market volatility, capturing investor interest and achieving gains that outshine its golden counterpart. This trend underscores the strategic importance of diversifying investments into both gold and silver, especially in times of economic flux. Furthermore, with central banks' ongoing support and global trade uncertainties, the appeal of these precious metals is expected to sustain, making them a prudent choice for investors.