Silver’s 25-year surge: Prices jump from Rs 7,900/kg in 2000 to Rs 2.16 lakh in 2025 -- 2,600% rise

Often living in the shadow of gold, silver has quietly delivered one of the most compelling long-term investment stories in commodities. Known for its volatility in the short run, the white metal has nonetheless proven its ability to protect wealth and generate meaningful returns for investors willing to stay the course. A look at silver’s performance over the past 25 years shows why it continues to command attention as a strategic portfolio diversifier.

Rs 1,000 to Rs 26,455

An investment of just Rs 1,000 in silver in the year 2000 would be worth Rs 26,455 today, provided the investor remained invested for the full 25 years. This represents a 26-fold increase in value, highlighting the power of long-term compounding and the importance of patience in commodity investing.

At the start of the millennium, silver prices in India averaged around Rs 7,900 per kilogram, according to a Forbes report. In contrast, silver is now trading near Rs 2.16 lakh per kg. This sharp rise translates into returns of more than 2,600% over the period, an outcome that challenges the long-held perception of silver as merely an industrial metal with cyclical demand.

From industrial metal to wealth preserver

In 2000, silver was largely viewed as a by-product of industrial cycles, with limited appeal as a long-term investment. Over the years, however, its dual role as both an industrial input and a precious metal has strengthened its investment case. Silver has increasingly acted as a hedge against inflation, currency weakness and global uncertainty, much like gold.

Historical trends show that silver helped stabilise portfolios during periods when equity markets delivered negative returns. During major market disruptions—including the dot-com bust, the global financial crisis, pandemic-driven volatility and recent geopolitical tensions—silver maintained its relevance as a store of value.

Demand drivers powering silver’s rally

Beyond its safe-haven status, silver is benefiting from strong structural demand. The metal is essential to several high-growth sectors, including artificial intelligence, data centres, renewable energy, electric vehicles and defence manufacturing. According to a recent Yes Bank report, silver demand is expected to remain strong in 2026, supported by rising retail participation and sustained industrial consumption.

On the supply side, the market is facing significant constraints. Global silver deficits, estimated at over 2,500 tonnes annually, have been exacerbated by mining disruptions and declining inventories. The US government’s move to designate silver as a critical mineral has further boosted its strategic importance, while Chinese inventories have fallen to decade lows.

Silver hits record highs in 2025

Silver touched unprecedented levels in 2025, signalling a strong comeback. Spot silver crossed $70 per ounce for the first time, while MCX silver surged to a record Rs 2,16,596 per kg. The rally was driven by geopolitical tensions, expectations of interest rate cuts in the US, and a weaker dollar.

Notably, silver has outperformed gold this year. Silver prices have jumped about 140% year-to-date, compared with a 76% rise in gold, sparking renewed investor interest in the white metal.

While silver can be volatile in the short term, its long-term performance tells a powerful story. Investors who remained invested through multiple market cycles have benefited not only from downside protection but also from substantial wealth creation. With global uncertainties still in play, silver continues to reinforce its role as an important long-term portfolio diversifier.