Silver Prices to Rise More Than Gold in 2025

Unlike previous years, silver prices are expected to see a higher surge than gold in 2025. According to a recent report by global investment firm WisdomTree, silver prices could rise by 23% in the coming year, while gold prices are expected to increase by 17%. The report highlights that the shortage in supply and increasing industrial demand will likely drive silver’s growth beyond that of gold.

WisdomTree stated in its report, “We remain optimistic about silver’s potential due to supply constraints and growing industrial demand, which serve as strong favorable conditions.” The report also notes that silver supply has been declining for several years, and this trend is expected to continue in 2025.

Expected Growth Rates:

• Silver Price Increase: 23% in 2025
• Gold Price Increase: 17% in 2025

Industries Driving Demand:

• Photovoltaic (Solar Panel Production)
• 5G Technology
• Automotive Electronics
• High-Efficiency N-Type Solar Cells

The report highlights that silver’s supply shortage is due to dwindling stock levels. Even when stock is available, investors hold a significant portion, further tightening supply.

In 2024, gold prices surged by 27% throughout the year, outperforming silver, which saw a 21% rise. By the end of 2024, silver prices in India reached ₹1.03 lakh per kilogram.

Gold Demand to Remain Strong in 2025

A report by brokerage firm Motilal Oswal suggests that gold demand in India will remain strong in 2025. Key factors driving demand include:

• Central Bank Purchases
• Gold Exchange-Traded Funds (Gold ETFs)

Geopolitical tensions and economic uncertainties are also expected to push gold prices higher. The report states that in 2024, ₹112 billion was invested in Gold ETFs, while the Reserve Bank of India (RBI) purchased 72.6 tons of gold.

Meanwhile, industrial demand for silver has reached record highs. Solar panel manufacturers are expected to set new records in 2025, further boosting silver demand. Additionally, advancements in high-efficiency N-type solar cells have increased the need for silver on a large scale.