Silver surges ahead of gold in 2025: Is it time to rejig your investment mix?

While gold continues to capture headlines, silver is quietly stealing the spotlight in 2025—delivering stronger returns and drawing more investor interest. As analysts point to silver’s rising industrial demand and constrained supply, many are re-evaluating their precious metals portfolio.

“For a metal that’s often treated as gold’s moody younger sibling, silver has been having quite the moment,” said investment platform Value Research. Unlike gold, which is currently supported by geopolitical tensions and central bank buying, silver’s rally is fuelled by its industrial applications—especially in solar energy, electric vehicles, and electronics. Industrial use now accounts for nearly 60% of silver demand.

This demand-supply mismatch is driving prices sharply higher. Silver prices on the Multi Commodity Exchange (MCX) jumped from ₹87,578 per kg in January to ₹1.05 lakh per kg by the end of June—a 20.4% rise. Gold rose 24.95% in the same period, but silver’s sharp June rally has outperformed on short-term metrics.

“Silver is benefiting from both safe-haven buying and industrial push,” said Nirpendra Yadav, Senior Commodity Research Analyst at Bonanza Portfolio. “Its dual nature makes it more volatile but also more responsive when global trends align.”

Investor flows reflect this interest—silver ETFs saw inflows of ₹854 crore in May alone, almost three times that of gold ETFs.

Adding to the momentum, Silver Exchange Traded Funds (ETFs) have delivered stellar returns this year. All 21 silver ETFs in the market have posted gains exceeding 30% in 2025 so far. Leading the charge is the UTI Silver ETF, returning 32.84%, followed by Aditya Birla Sun Life Silver ETF at 31.92% and Axis Silver ETF at 31.87%. Even the lowest-performing fund, Tata Silver ETF, delivered a strong 30.54% gain.

On the technical side, Manoj Kumar Jain, Research Head at Prithvifinmart Commodity Research, noted gold has support at $3,355–$3,330 and resistance at $3,389–$3,409 per ounce. For silver, support lies at $38.84–$38.40, with resistance at $39.50–$39.80.

On MCX, gold support is seen at Rs 98,330–Rs 98,000 and resistance at Rs 99,100–Rs 99,500. For silver, support is pegged at Rs 1,14,400–Rs 1,13,650, and resistance at Rs 1,16,000–Rs 1,16,600. Jain recommends a buy-on-dips strategy for silver with a target range of Rs 1,16,000–Rs 1,17,000.

In early Friday Asian trade, spot gold edged up 0.1% to $3,371.86 per ounce, buoyed by a weaker dollar. Spot silver held flat at $39.10, while platinum rose 0.4% to $1,413.55 and palladium gained 0.8% to $1,237.35.

Experts advise a balanced approach: silver’s industrial story is strong, but gold remains a core hedge. “Silver may outperform in the near term,” Yadav noted, “but gold’s safe-haven status will always have a place. Diversification is key.”

(With agency inputs)