With 59% return so far, silver is having its best year since 2016

Silver prices are up 59.3 per cent in 2025, hitting nearly $44.55 an ounce (oz) in international markets and ₹137,040 per kilogram (kg) in India on Thursday. It's the best return the metal has given since 2016.

- PUNEET WADHWA

Silver has outperformed gold (price up around 49 per cent at ₹1,12,895 per 10 gram as of Thursday, September 25) in 2025. Silver gave such a return back in 2020 when prices rose 44 per cent to ₹67,383 per kg from the previous year, according to data. Gold prices that year increased 27.9 per cent to₹50,001 per 10 gram.

Silver has been "redefined" as an investment option, analysts said. Weak market demand and a production surplus from 2010 to 2020 resulted in subdued prices.

The landscape changed after 2021, triggered by rising industrial demand for the metal.

By 2024, industrial demand hit a record high of 680.5 million ounces (Moz), according to a note by Nomura. The trend led to a total demand of 1,164.1 Moz against a total supply of just 1,015.1 Moz, creating a market deficit of 148.9 Moz.