Skyrocketing Silver Prices 2025 have taken global markets by surprise, with silver outperforming both gold and platinum in percentage gains over the past year.
Even higher than Gold & Platinum
Dated 21.10.2025: Over the last year, silver has generally been the top performer among the three metals in terms of percentage gains, with all three seeing significant increases.
The comparison is often summarized by highlighting silver’s higher volatility and gold’s role as the steady safe-haven asset.
Here is a comparison of how silver’s price increase stacks up against gold and platinum:
1. Silver: The Outperformer in Percentage Gain
- Percentage Increase: Silver has seen the steepest percentage rise over the past year. Market reports indicate that silver has returned anywhere from 69% to over 80% in the domestic (Indian) market and similarly strong returns internationally.
- Driving Factors: This sharp rise is due to its dual role: its sensitivity to monetary policy (like gold) combined with its exploding industrial demand (solar panels, EVs, 5G) amid a significant supply deficit. Silver’s smaller market size also makes its price more volatile, magnifying its gains during a bull run.
- Valuation: Many analysts have noted that the Gold-to-Silver Ratio was at historic highs (suggesting silver was undervalued), which acted as a catalyst for silver’s aggressive “catch-up” rally.
2. Gold: The Foundation of the Rally
- Percentage Increase: Gold has also seen a powerful rally, with domestic returns reported to be around 61% to over 65% for the same one-year period.
- Driving Factors: Gold’s rise is primarily driven by its function as a safe-haven asset—fueled by geopolitical tensions, central bank buying (diversification away from the dollar), and expectations of interest rate cuts.
- Price Levels: Gold has also hit multiple all-time highs in various currencies, but its overall percentage gain has generally been slightly lower than silver’s, reflecting its more stable, less volatile nature.
3. Platinum: The Underperformer but Poised for Catch-Up
- Percentage Increase: Platinum’s performance has historically lagged silver and gold, but it has recently begun to catch up with strong gains. One report noted platinum trading with gains of more than 65% on a year-to-date basis (as of early October 2025), which puts it in a similar range to gold, and at times, even outperforming gold in the short-term.
- Driving Factors: Platinum’s price is heavily tied to industrial demand, particularly the auto sector (catalytic converters) and its emerging use in hydrogen fuel-cell technology. Like silver, it benefits from supply deficits.
Valuation: Platinum is considered by many to be at a historic discount to both gold and silver. For much of the 20th century, platinum commanded a premium over gold, a relationship that has reversed in recent years. This deep undervaluation is now leading to expectations that platinum could be the next precious metal to see significant upside as it tries to close the price gap.
Why Silver Prices Are Skyrocketing ?
Silver Price Trend in the Last One Year
While the exact price fluctuates daily and varies by region (e.g., global vs. India domestic), the trend has been sharply upward.
- Significant Rise: Less than a year ago, silver was trading at substantially lower levels. For instance, in India, it was selling for around ₹1,10,000 per kilogram, but has since surged to highs exceeding ₹1,70,000 to over ₹2,00,000 per kilogram in the physical market.
- International Market: Globally, silver has breached the critical $50 per ounce mark for the first time in many years.
- Performance: Analysts noted that silver has been one of the most profitable investments this year, with significant percentage gains, often outpacing gold and equities in returns.
The surge is not merely speculative, but is fundamentally driven by a structural imbalance between supply and demand, particularly due to silver’s crucial role as an industrial metal.
1. Explosive Industrial Demand (Especially “Green Energy”)
Silver is an essential component in high-growth technology sectors, making its demand inelastic and less sensitive to price increases.
- Solar Power (Photovoltaic – PV): The clean energy transition is the biggest driver. The solar sector consumes a large percentage of global silver output, and demand is projected to rise dramatically as new solar capacity is installed globally. Silver’s high electrical conductivity makes it irreplaceable in solar panels.
- Electric Vehicles (EVs): Each electric vehicle uses significantly more silver (2 to 4 times) than a traditional combustion engine car for its components, wiring, sensors, and circuits.
- Electronics and Technology: Silver is critical for 5G technology, AI infrastructure (data centers), and semiconductors, further cementing its role as a necessary “workhorse” metal.
2. Tightening Global Supply and Deficits
The supply side is struggling to keep pace with this surging industrial demand.
- Structural Deficit: The silver market has been in a structural supply deficit for several consecutive years, meaning annual demand consistently outstrips new supply.
- By-product Mining: Around 70-75% of silver is mined as a by-product of other base metals like copper, zinc, and lead. This means silver production cannot be quickly ramped up just because its price rises; it depends on the mining activity of those other metals.
- Shrinking Inventories: Visible global stockpiles (inventories held in major vaults in London, New York, etc.) have been drawn down significantly, creating an acute physical shortage and market tightness.
3. Investment and Geopolitical Factors
As a precious metal, silver also benefits from traditional factors.
- Safe-Haven Demand: Global geopolitical tensions, economic uncertainty, and high government debt encourage investors to seek safe-haven assets like precious metals.
- Monetary Policy: Expectations of central banks cutting interest rates and a softer US dollar tend to boost the appeal of non-yielding assets like silver and gold.
- Catch-up to Gold: Silver is often seen as historically undervalued compared to gold (a high Gold-to-Silver Ratio), leading to an accelerated rally as investors bet on silver “catching up.”
- Domestic Demand: Strong festive and wedding season demand, particularly in India, has also amplified local prices, sometimes causing domestic spot prices to trade at a significant premium to global rates.
The skyrocketing silver prices in 2025 are being driven by industrial demand and tight supply.
Analysts expect the skyrocketing silver prices 2025 trend to continue if supply shortages persist.
Compared to gold, silver’s 2025 bull run has been exceptional.
Silver Institute – World Silver Survey
Kitco – Precious Metals Market Data
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