Silver is set to shine brighter than gold in 2025, with supply shortages and booming industrial demand pushing prices higher, according to a report by investment firm WisdomTree. The report predicts silver will surge by 23% over the next year, surpassing gold’s expected 17% increase.
Silver’s supply crisis is intensifying, marking what could be its fifth consecutive year of deficit. Despite available inventory, much of it is held by investors demanding higher prices before selling. This limited supply, coupled with soaring industrial use, is driving silver’s strong upward momentum.
The surge in silver’s demand comes from its crucial role in emerging technologies. Solar panel installations are expected to hit record highs in 2025, requiring more silver than ever. Advancements in high-efficiency N-type solar cells, which use greater silver content, further strengthen demand. Additionally, the rise of AI, data centers, and 5G technology continues to drive silver consumption.
The automotive industry is another key player in silver’s bullish run. The increasing use of electronic components and investments in EV battery-charging infrastructure are making silver an essential metal for the sector. With these developments, experts believe silver could be significantly undervalued compared to gold.
Market trends also point toward silver’s rise. The gold-to-silver ratio soared past 90 in January 2025 before beginning to decline, a technical signal that often precedes a silver rally. Historically, when this ratio nears 92, silver prices experience sharp upward corrections.
In India, silver prices have already climbed to ₹1,03,000 per kg, reflecting global trends. However, factors like the Rupee-Dollar exchange rate and trade policies will also influence future price movements.
With silver positioned for an explosive year, investors and industries alike are watching closely. Will silver finally outshine gold? The answer may unfold in 2025.
