According to the Silver Institute, the global silver demand is expected to exceed 1.2 billion ounces in 2025, driven by its crucial role in solar energy, electric vehicles (EVs) and industrial electronics. Silver trades around $ 32.50/oz worldwide (£ 2,700 per 10 grams) from July 2025, an increase of 18% yoj. In India, prices have crossed the £ 90,000 per kg and an increase of more than 20% on an annual basis, the better performance of many traditional investment instruments such as FDs and even short-term gold trials.
What feeds the rise in Silver?
1. The ambitious renewable energy goals of clean energy Pushindia-500 GW of non-fossil fuel capacity in 2030-zullen require huge investments in solar educ structure, where silver is a core material. Each solar panel uses 15-20 grams of silver, and demand is expected to grow with the summary of the production of the government Incentive (PLI) in renewable energy sources and semiconductors.
2. EV -Adoption in India
According to estimates from Niti Aayog, India strives to 30% EV penetration in private vehicles by 2030. EVs use 2-3x more silver than internal combustion vehicles, in particular in connectors and operating systems. This will considerably increase domestic industrial silver consumption.
3. A hedge against inflation and rupid weakness
With domestic inflation on average above 5%, and the rupid that floats nearly £ 84/USD, Silver offers a hedge against both purchasing power erosion and value reduction. In contrast to gold, silver also benefits from industrial use and offers double potential from the top.
4. Limited domestic stock
India imports more than 60% of its silver requirements, making it very sensitive to global shifts for the offer. With the worldwide stagnation of mining production and a flourishing of industrial demand, the prices are expected to become sturdy or trend in the medium term.
Investment options for Indians:
Indian investors now have several regulated and accessible ways to invest in silver:
Silver ETFs: Introduced in 2022, these see growing traction. The total control assets (AUM) in Indian silver ETFs have grown more than 70% yoj (AMFI, Q2 2025).
Silver Futures: MCX silver and silver mini contracts offer high liquidity. The trade volumes have risen by 35% in the past year, which is a reflection of investor interest in silver price movement in the short to medium term.
Digital silver: Offered by Fintech platforms, offers fractional ownership and convenience of buying/selling, especially for younger investors.
Physical silver: Coins, bars and jewelry still have cultural and emotional value – especially during Akshaya Tritiya, Dhanteras and weddings.
Potential sovereign silver bonds: If introduced on the lines of Sovereine Golden Bonds (SGBs), they can offer an attractive fixed return in addition to price valuation and tax benefits.
Risks to be aware of:
Although the basic principles look strong, silver is more inherent more volatile than gold. Important risks include:
- Price fluctuations due to global economic data or FED policy
- Geopolitical tensions that influence import
- Speculative trade on Futures -Markten
Investors are advised to keep silver as part of a diversified portfolio – ideal 5-10%, depending on the risky appetite and time horizon.
Conclusion:
While India accelerates its clean energy and EV -Push, Silver will play a crucial role – not only in industry, but in creating wealth. For Indian investors looking for alternatives that go beyond gold, shares and FDs, Silver offers the possibility to participate in the next industrial and economic wave – with the extra shine of inflation protection and global rugwind.
(The author, Inderbir Singh Jolly is CEO at PL Wealth Management)
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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