- Silver vs. Gold: Decoding the “Safe Haven” and the “High-Growth”
- How Silver Outperformed Stocks and Gold Alike
- Silver traders earned more than gold and share market dealers
- The Twin Engines Driving Modern Silver Demand
- Bulky but Brilliant: Overcoming Traditional Biases Against Silver Investment
- India’s Silver Surge: Imports, Monetization, and Cultural Shifts
- India a massive Importer of Silver
- The High-Beta Metal: Navigating Silver’s Famous Volatility for Maximum Returns
Silver is often called the “poor man’s gold,” but in recent years, it has transformed into a high-tech powerhouse. Below is an overview of why silver is vital, its current price trends, and the unique cultural reasons behind India’s relationship with the metal.
Silver is classified as precious alongside gold, platinum, and palladium due to three main factors. It is rare in the Earth’s crust. Most silver is not mined directly; it is a “by-product” found while mining for other metals like copper, lead, and zinc. Unlike paper money, silver cannot be “printed.” It has a finite supply, which helps it retain value during inflation or economic crises. Unique Physical Properties: It has the highest electrical and thermal conductivity of any element, and it is the most reflective metal on earth.
Is the Price of Silver Increasing Continuously?
Silver prices are famously volatile (they swing up and down more sharply than gold). However, the long-term trend has been upward. As of late 2024 and 2025, silver has seen a massive rally. In India, prices recently crossed the historic mark of Rs 1 Lakh per kg and touched 2.33 lakh per kg. For several years, the world has used more silver than it has mined. This “structural deficit” is a primary reason why prices are currently trending upward.
The Modern Demand-Where is Silver Used?
While gold sits in vaults, silver is “consumed” by industry like green energy, electronics, electric batteries, fabrics and medicines. Every solar panel uses silver paste to conduct electricity. As the world moves to renewable energy, this demand is exploding. Electric Vehicles (EVs) use nearly double the silver of traditional cars for sensors, battery management, and charging stations. Silver is in your smartphone, laptop, and even microwave (in the membrane switches). Because it is antibacterial, silver is used in wound dressings, catheters, and water purification systems.
India’s Position: A Global Superpower in Silver
India is one of the most important players in the global silver market. India is often the world’s largest importer of silver. In late 2024, Indian silver imports surged by over 300% year-on-year. The “Silver Monetization” started in India. The Reserve Bank of India (RBI) recently introduced frameworks allowing silver to be used as collateral for loans, similar to gold. This is a massive shift that treats silver as a formal financial asset. The silver hoarders can get loans by mortgaging the metal. With India’s push for local solar panel and semiconductor manufacturing, domestic industrial demand for silver is at an all-time high.
Why Indians Prefer Gold over Silver
Despite its utility, most Indian households still prioritize gold. The reasons include cultural status, symbol of “Lakshmi“, purity, essential for weddings and often seen as “ornamental” (anklets/toe rings) rather than “wealth.” High value in small size and Rs10 Lakhs of gold fits in a pocket. Silver will be bulky when compared gold. Rs 10 Lakhs of silver weighs over 5 kg and needs a large locker. Resale is ease in gold and every jeweler buys gold instantly. Higher “making charges” and “wastage” often reduce the resale profit. But, gold is known for steady and stability growth, a “safe haven.” Silver is highly volatile and prices can crash 20% in a month, which scares conservative investors. |
Should you consider Silver?
Silver is no longer just for jewelry and it is a strategic industrial metal. While gold is the “anchor” for safety, silver is often viewed by modern investors as “Gold on steroids” meaning it can provide much higher returns when the economy is booming, though with higher risk. Comparing the historical returns of Gold and Silver in India over the last decade (2015–2025) reveals a fascinating story. While gold has been the steady winner for most of the decade, 2025 has been a “breakout year” for silver, where it outperformed almost every other asset class.
10-Year Performance Overview (2015–2025)
The last 10 years can be split into two phases – a period of steady growth (2015–2023) and a period of explosive growth (2024–2025). Price of silver per kilo in 2015 (Approx) Rs 37500 per kilo and its price in Late 2025 (Approx) Rs 2.33 lakh per kilo. The increase is seven times fold and CAGR (Compound Annual Growth Rate) is 16.2 per cent 460 per cent. When compared the CAGR of gold it ranges from 17.1 per cent and 450 percent. Although Gold had a slightly higher annualized return for much of the decade, the massive surge in 2025 pushed Silver’s total 10-year percentage return above Gold’s in many market segments.
The “2025 Miracle”: Why Silver Raced Ahead
In 2025, the traders, who relied on silver and gold trading as part of making more and more profits than the businessmen in share market. In 2025 alone, silver delivered “multi-bagger” returns that shocked even seasoned experts. Silver in 2025 gained nearly 144 per cent in a single year from Rs 85,000 to over Rs 2.30 lakh. Gold in 2025 gained a very strong 78% but was still “slower” than silver. By comparison, the stock market only grew by about 10% in 2025, causing many Indian investors to move their money into metals.
Year-by-Year Comparison (Winning Years)
Silver is a “high-beta” asset, meaning when it moves, it moves much faster than gold both up and down. In 2016, 2020, and 2025, silver outperformed gold significantly. These were years of high industrial recovery or major global shifts (like the green energy boom in 2025). Gold Won: In 2018, 2019, 2022, and early 2024, gold was the better performer. Gold acts as a “shield” during wars and high inflation, whereas silver acts as a “sword” during industrial growth.
Which One Should You Choose?
The decision depends on your risk appetite. Choose Gold if you want stability. Gold has lower volatility (it doesn’t crash as hard) and is easier to sell in small quantities at any local jewelry shop in India. It is the perfect “emergency fund.” Choose Silver if you want growth. Silver is riskier and more volatile, but as the 2025 data shows, it has the potential to deliver massive, life-changing returns when industrial demand (solar panels, EVs) peaks.
The Verdict
Historically, Indians ignored silver because it was “bulky” and “cheap.” However, with silver crossing Rs 2 Lakh per kg in 2025, it is no longer seen as just an ornament. It has become a serious investment asset that actually beat the Nifty 50 and Gold over the last 5-year and 10-year windows.
Editor, Prime Post
Ravindra Seshu Amaravadi, is a senior journalist with 38 years of experience in Telugu, English news papers and electronic media. He worked in Udayam as a sub-editor and reporter. Later, he was associated with Andhra Pradesh Times, Gemini news, Deccan Chronicle, HMTV and The Hans India. Earlier, he was involved in the research work of All India Kisan Sabha on suicides of cotton farmers. In Deccan Chronicle, he exposed the problems of subabul and chilli farmers and malpractices that took place in various government departments.
It is astonished to learn that siver has become costly on par with gold. Traders are gaining big money in selling silver ornaments. This is first time I am hearing this. It’s time for buying silver ornaments as the prices further also enhanced.