Silver Shines Bright with 30% Surge in 2025

Silver Shines Bright with 30% Surge in 2025

Why in News? 

Recently silver climbed about 30% in 2025 so far. It has hit fresh record highs in Indian markets. Strong industrial use in clean energy and rising investor interest have driven prices higher. 

Key Highlights of Silver Shines Bright with 30% Surge in 2025

• Silver rose nearly 30% during early 2025, showing strong momentum in the global market.
• In June, global silver rates crossed $35 per ounce, reaching their highest point in over 13 years.
• In India, prices climbed above ₹1.14 lakh per kilogram for the first time.
• Over 50% of global demand now comes from the green energy and technology industry.
• The silver market remains in a structural deficit. For the fifth consecutive year, demand exceeded supply in 2024.
• The gold-silver ratio dropped from around 105 in April to near 94 by June. This signals silver is gaining relative value compared to gold.
• Large-scale buyers such as ETFs, commodity funds, and institutional investors have poured money into silver. Holdings in silver-backed ETPs are at record highs—exceeding 1.13 billion ounces.
• Some estimate silver could reach $40–$50 per ounce within months; a few even predict $100+ in the long run. 
• In India, experts foresee prices hitting ₹1.4 lakh/kg short-term, possibly reaching ₹2 lakh/kg by 2026.

Factors that Affect Silver Prices Worldwide

• Industrial Demand: Industrial consumption is one of the largest drivers of silver demand. Silver is an essential component in solar panels, electrical circuits, and batteries. Its conductive and reflective properties make it crucial for modern technology. 

• In 2024, over 50% of the world’s silver was used in industrial applications, particularly solar energy production and electric vehicles. 

• The International Energy Agency reported that global solar installations rose sharply in 2023 and 2024, each solar panel uses several grams of silver.

• Global Economic Stability: When the economy looks uncertain, silver prices usually move upward. When inflation rises or central banks cut interest rates, investors seek safe assets. Silver, like gold, becomes attractive in such scenarios. People invest in silver to protect their money from inflation and falling currency value.

• In 2025, the U.S. Federal Reserve hinted at rate reductions to support economic growth. This caused the dollar to weaken slightly. 

• Market Deficits: The supply side also plays a big role in silver’s price movements. Mining output, recycling trends, and inventory levels determine how much silver is available in the market. If production drops or demand exceeds supply, prices rise due to scarcity.

• According to the Silver Institute, in 2024 demand exceeded supply by nearly 140 million ounces. 

• • • Major silver producers like Mexico, Peru, and China control much of the world’s supply.  

• Exchange-Traded Products (ETPs): Investor activity significantly affects the silver market. Buying and selling through exchange-traded products (ETPs) and silver futures have a strong impact on prices. When large investors, such as hedge funds or financial institutions, enter the market, they can trigger rapid price increases.

• Investors use silver-backed ETPs to own silver without needing to keep the metal themselves.

• These investment tools are easy to buy and sell, which makes them attractive. These investment tools are easy to buy and sell, which makes them attractive.

Role of Silver in Green Energy and Industrial Sectors

• Component in Solar Photovoltaic Technology: The solar energy sector relies heavily on silver due to its ability to conduct electricity efficiently. Each solar cell requires a thin layer of silver paste to transmit the electric current generated from sunlight. This unique application connects silver directly with the world’s transition to renewable energy.

• According to the Silver Institute, nearly 12% of all silver demand in 2023 came from the photovoltaic (PV) industry alone. 

• As of 2024, solar capacity worldwide grew beyond 1,400 gigawatts, with major contributions from China, India, and the U.S.

• Integral to Electric Vehicles: The electric vehicle (EV) industry depends on various metals, and silver is one of the most vital among them. From advanced battery systems to internal circuitry and control units, silver ensures that these components operate with speed and reliability.

• Data from 2023 suggests that silver usage per electric vehicle ranges from 25 to 50 grams.

• • • Global EV sales crossed 14 million units in 2023, and projections for 2025 suggest a potential rise to over 17 million units. 

• Industrial Electronics: From printed circuit boards (PCBs) to sensors and contact switches, silver supports essential functions in thousands of devices used daily. Industries like telecommunications, aerospace, defense, and consumer electronics utilize silver for its consistent performance in both low and high-voltage environments. It enables faster data transmission and resistance to environmental damage.

• • In 2024, industrial electronics consumed over 680.5 million ounces of silver globally, according to market estimates. 

Status of the Silver Industry in India

• Silver Production: Most of India’s silver is extracted as a byproduct during the mining of lead, zinc, and copper. Rajasthan produces most of India’s silver, with major help from Hindustan Zinc Limited.

• • • The Rampura Agucha and Sindesar Khurd mines in Rajasthan account for the majority of silver mined in the country. 
    • Hindustan Zinc, a subsidiary of Vedanta Group, has reported that it produced approximately 800 tonnes of silver in 2023. 

• Total Silver Reserves: As per data from the Indian Bureau of Mines, India’s recoverable silver reserves are estimated at around 10,000 tonnes. 

• • • The Geological Survey of India (GSI) has identified small-scale silver reserves in some eastern regions, but they are not yet commercially developed.
    • The Indian government has encouraged private sector participation and foreign collaboration to improve technology in ore processing and metal recovery, especially for silver.

• Import: India ranks among the largest importers of silver in the world. The country relies heavily on international markets to fulfill its internal demand, which is driven by jewelry, investment, and industrial use.

• India mainly imports silver from countries like Switzerland, UK, and Hong Kong.

• • In 2023, India imported over 8,000 tonnes of silver, as per customs data. 
• Export: India exports silver in various refined and semi-processed forms, such as silver bars, coins, and silver-based electrical components.          
• Total silver exports from India in 2023 were below 100 tonnes, mostly heading to the Middle East and Southeast Asian markets.