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On Thursday (June 5, 2025), silver prices hit an all-time high of Rs 1.04 lakh per kilogram in India. That’s a Rs 3,500 jump in just two days. Globally, silver hovered near $34.9 an ounce, up more than 20 per cent year-to-date.
But is this just another speculative surge, or is there more to the metal’s momentum?
What’s happening?
Precious metals tend to shine during periods of uncertainty, and 2025 has had its fair share. With geopolitical conflicts simmering, a slowing US economy, and expectations of rate cuts, silver is back in the spotlight.
In India, silver prices are being driven higher not just by global cues but also by a weakening rupee. As of today, spot silver prices stood at:
| Region | Price per kg | Change (last two days) |
|---|---|---|
| India | Rs 1.04 lakh | Rs 3,500 |
| Global (per oz) | $34.88 | 1.14 per cent |
What’s driving the surge?
- Safe-haven demand: Global conflicts and trade tensions are pushing investors to seek refuge in tangible assets. Gold is the traditional favourite, but silver, often dubbed ‘gold’s cheaper cousin’, has its own fan base, especially when volatility rises.
- US economic slowdown: The US ISM Services PMI dropped below 50 (49.9), signaling contraction. Job creation is slowing. These indicators are increasing the odds of a Fed rate cut, which tends to benefit non-yielding assets like silver.
- Industrial appetite: Silver isn’t just a shiny metal, it’s essential to green tech. From solar panels to electric vehicles and semiconductors, silver demand is rising in sync with the global shift to clean energy. China and India are leading the charge in renewable expansion.
- Supply-side constraints: Mining disruptions in Peru and Mexico, along with stricter environmental norms, are tightening global silver supplies. With demand up and supply down, prices are bound to rise.
- Currency factor: A weaker rupee is amplifying the domestic price hike. Since India imports most of its silver, any depreciation makes the metal costlier here.
The takeaway
Silver has outperformed many traditional assets this year. But that doesn’t mean it’s risk-free. The metal is notoriously volatile, often more than gold. While the long-term case for silver is backed by industrial usage, short-term corrections are part of the ride.
Its current rally is supported by a mix of macro uncertainty, industrial tailwinds and supply tightness. It’s not just a knee-jerk speculative move.
That said, if you’re chasing returns, don’t get dazzled by just the shine. Understand your risk appetite and entry point.
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Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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