In 2025, precious metals have defied expectations, surging to record highs amid a confluence of economic, industrial, and geopolitical forces. Analyses indicate that while gold continues to shine as a safe-haven asset, silver is emerging from its traditional “poor man’s gold” status to potentially deliver stronger returns—underpinned by robust technical foundations, surging industrial demand, and shifting investment behavior.
Globally, silver recently surpassed $36 per ounce—its highest point in 13 years—buoyed by bullish technical indicators and a weakening U.S. dollar. The gold-silver price ratio, a key valuation metric, remains elevated—hovering near 97–100:1—a sign that silver may be undervalued relative to gold. Historically, when this ratio contracts, silver has experienced outsized gains, as evidenced in 2020 when a steep decline in the ratio coincided with a 37% rise in silver, compared to just 10% in gold .
Silver’s renewed momentum is strongly linked to its industrial applications. Approximately 80% of demand is industrial—most notably in solar panels, electronics, electric vehicles, and medical devices. The green energy shift has intensified this trend: solar photovoltaic manufacturing alone consumes tremendous quantities of silver. Meanwhile, mine production has been faltering, and recycling streams have dwindled, tightening supply even as demand grows. A 2024 report estimated a global silver deficit of about 149 million ounces, a significant strain on supply that could force prices higher.
Beyond industrial use, investment dynamics are changing. Central banks and institutional investors are showing growing interest in silver, often through ETFs. These vehicles offer more accessible exposure compared to physical bullion, drawing particularly strong inflows amid rising inflation and global uncertainty. In the United States, consumers are even liquidating silver coins, jewelry, and heirlooms—driven by the 27% price rally so far this year .
While gold has also enjoyed a dramatic surge—rising around 40% in India and reaching ₹1,02,055 per 10 g, with silver crossing the ₹1 lakh/kg threshold—some analysts caution that gold may have peaked and could retreat. Citi predicts gold falling below $3,000 per ounce by late 2025 on improving economic conditions, though it forecasts silver climbing to $40–46 per ounce along the same horizon. In contrast, silver prices in India hit an all-time high of ₹1,07,425/kg on June 17, aligning with optimism over industrial demand from Chinese retail and manufacturing sectors.
On the domestic front, in response to soaring precious metal prices, jewelers in India are shifting strategies. PNG Jewellers has launched a “Litestyle” line featuring lightweight, lower-carat pieces—catering to consumers seeking affordability as gold prices—now at a record ₹1,01,078 per 10 g—climb. This pivot highlights shifting consumer behavior: demand is diversifying from gold to include silver and budget-conscious jewelry options.
Financial forecasts reinforce this narrative: international analysts anticipate silver rising 15–19% in 2025—potentially reaching ₹1,10,000–1,25,000/kg in India—driven by a weakening dollar, global monetary easing, and persistent industrial requirements. Meanwhile, gold’s upside may be limited by central bank rate policies and economic normalization, though reserve accumulation by global central banks remains supportive.
In summary, 2025 marks a pivotal year for precious metals. Gold continues to offer stability and retains its role as a hedge in turbulent times, but the other—with its dual status as both an industrial metal and a monetary asset—may offer greater upside. Its strong demand fundamentals, constrained supply, technical momentum, and relative affordability make it an increasingly attractive proposition for investors. As Citi and other market watchers highlight, silver may indeed outperform gold in the medium term . For investors assessing precious-metal exposure now, silver could be the smarter choice—not just the cheaper one.
