Silver Prices Jump 150% in 2025, Cross ₹2 Lakh/kg, Outshine Gold on Demand Boom

Silver delivered extraordinary returns in 2025, clearly outperforming gold, equities, and most other asset classes. International silver prices surged nearly 158% year-to-date, while domestic spot silver prices in India rose around 156%, compared to gold’s roughly 80% gain.

On December 26, 2025, MCX silver March futures hit a fresh record high of ₹2,32,741 per kg, while MCX gold February contracts climbed to ₹1,39,216 per 10 grams.

Why Are Silver Prices Rising? 5 Key Reasons

1. Strong Industrial Demand

Silver is seeing massive demand from fast-growing sectors such as electric vehicles (EVs), solar power, semiconductors, electronics, and data centres. Around 55–60% of global silver production is now used for industrial purposes. According to the Silver Institute, industrial demand touched a record 680.5 million ounces in 2024 and continues to rise.

2. Tight Supply and Market Deficit

While demand is rising, silver supply remains limited. The global silver market has been in a deficit for four consecutive years. In 2024 alone, the deficit stood at 148.9 million ounces, creating scarcity and pushing prices higher.

3. FOMO-Driven Buying

Apart from fundamentals, fear of missing out (FOMO) has played a major role. As silver prices rallied sharply, retail investors and traders rushed in, expecting the uptrend to continue, further accelerating the price rise.

4. US Federal Reserve Rate Cuts

Rate cuts by the US Federal Reserve have supported non-yielding assets like gold and silver. The Fed cut rates 3 times in 2025, lowering interest rates by 0.75%, with expectations of further cuts in 2026. Lower rates weaken the dollar and make precious metals more attractive.

5. Geopolitical Uncertainty

Rising geopolitical tensions, global conflicts, and concerns over trade and tariffs have increased demand for safe-haven assets. Silver, along with gold, benefited as investors looked for protection against uncertainty and inflation.

Read More, Silver ETFs 2025 Recap: Multiple Funds Deliver Over 100% Returns; UTI Silver ETF, SBI Silver ETF FoF and More.

Conclusion

2025 has been a landmark year for silver. With prices soaring beyond ₹2 lakh per kg and returns beating gold by a wide margin, silver has established itself as a standout asset, backed by strong demand, limited supply, and supportive global conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

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