Silver's big breakout

Summary: Silver has broken out of gold’s shadow, driven by supply shortages and accelerating demand from solar, EVs and electronics. With industrial usage rising and volatility offering diversification benefits, silver is emerging as a meaningful satellite allocation for long-term portfolios.  Until recently, silver was seen as a supporting character in the world of precious metals. Investors admired gold for its stability and central-bank backing, while silver was a more volatile cousin best suited for jewellery and small savings. However, 2024 and 2025 have reshaped this perception dramatically. Silver prices have crossed Rs 2 lakh per kilo, rising nearly 2.6 times in the last two years, a surge that coincided with one of the strongest demand-supply imbalances in years. The dramatic rally has compelled investors to revisit a simple question: Is silver finally stepping out of gold’s shadow and developing an independent long-term story of its own? The answer lies in understanding what has changed beneath the surface. The supply squeeze Global silver demand in 2024 stood at 1.16 billion ounces, compared with a supply of barely 1.02 billion ounces. The 149 million ounce deficit marked the fourth straight year of shortfall, pushing the combined deficit across 2021–2024 to over 600 million ounces. Heavy dependence on by-product mining: Around 58 per cent of the world’s silver production comes unintentionally, extracted while mining other metals such as zinc, copper

This article was originally published on January 01, 2026.