Gold has attracted attention for its record gatherings, as geopolitical and economic uncertainty pushed investors to safe haven assets, thus exceeding Rs 88,310 per 10 grams for the first time. Meanwhile, in 2055, silver also reached a new high of Rs 1,01,999 per kilogram, reflecting the growing demand and its dual role as a currency and industrial metal.
Historically, silver has been called “the gold of the poor.” However, silver plays an important role in various industries including electronics, renewable energy and high-tech manufacturing. Silver may outperform gold’s performance in the coming quarters. Although gold remains a strong asset, Silver’s industrial demand, relatively undervalued, supply issues and currency appeals may yield better returns. If these trends continue, silver may outperform gold in the coming quarters.
Silver’s history in bull market is better than historical performance
In most precious metal bull markets, silver has a history of overcoming gold, mainly at rally peaks. In 2020, silver prices soared nearly 63%, surpassing gold’s earnings in amid pandemic-driven uncertainty. A similar trend appears to be emerging in 2025. While gold in 2024 hit a high of about 26% per year, silver quietly climbed 34%, laying the foundation for potential repetitions beyond performance in the past.
Silver has long played a dual role – both haven assets and key industrial metals.
Silver’s industrial demand burns bullish outlook
With gold’s value comes primarily from its role as a monetary metal, silver is deeply embedded in modern technology. More than half of the global silver demand comes from industrial applications such as electronics, solar panels and electric vehicles (EVs). According to the Silver Institute, demand for Industrial Bank is expected to exceed 700 million ounces in 2025, positioning it as the main driver of price growth.
The clean energy revolution also provides a significant tailwind for silver. The solar industry alone accounts for nearly 15% of silver consumption, and demand will increase as the government strives for net zero emissions. In addition, advances in artificial intelligence and high-performance semiconductors depend on the silver’s conductivity, further increasing demand. These factors position silver as one of the most popular items of 2025.
Insufficient supply increases price pressure
Over the years, silver has experienced insufficient supply and demand has consistently surpassed mine production. In 2024, the shortage of the silver market exceeded 200 million ounces, the largest in recent history. Experts expect this trend to continue in 2025, putting further upward pressure on prices.
Currency factors drive silver higher
In addition to industrial demand and supply constraints, macroeconomic conditions favor silver. Silver has many currency-driven gold, such as inflation, central bank policies and currency devaluation.
Historically, silver tends to perform well in a low interest rate environment due to its lower chances of holdings, weak dollar, inflation fears, higher industrial and investment demand. The Fed expects a lower tax rate in 2025 to create a favorable environment for silver, similar to previous periods of monetary easing. In addition, increasing global debt and fiscal instability have enhanced Silver’s attractiveness as a safe haven asset.
Gold Wire Ratio (GSR)
The Golden Ratio (GSR) has dropped in a year-on-year high, but its long-term historical average is about 60 points, but it still rises in 88.9 points. The current gold-silver ratio enhances the attractiveness of silver as an investment opportunity. During the 2008 financial crisis and the Great Depression, the GSR initially soared to 80:1 as the Fed stepped up printing. Similarly, in 2020, GSR hit a record 123:1 during the pandemic as central banks inject liquidity into global economies.
With industrial demand soaring, the persistence of inadequate supply and the consistency of macroeconomic factors, silver is shaping into one of the most promising investment opportunities in 2025.
Although gold remains the cornerstone of wealth preservation, Silver’s dual nature as a monetary metal and industrial power positioned it as a potentially outstanding performer. Investors looking to diversify their portfolios may find silver becoming more attractive as it grows in 2025.
