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After weeks of decline, silver prices are back in the spotlight, following gold’s record-breaking surge. As bullion traders speculate whether silver will breach the ₹1 lakh per kg mark, experts are closely watching market trends and industrial demand.
Silver Prices on the Rise
Silver price movement (as per IBJA data):
Feb 18: ₹95,959 per kg
Feb 19: ₹97,000 per kg
Feb 20: ₹97,181 per kg
Feb 21: ₹96,844 per kg
Feb 22: ₹97,000 per kg (West Bengal Bullion Merchants & Jewellers Association)
Despite the steady climb in silver prices, the silver-to-gold ratio remains at a historic low of 0.01, primarily due to the sharp rise in gold prices. For perspective, the all-time high silver-gold ratio stands at 0.06.
Silver ETFs Gaining Popularity Amid Bullish Outlook
With silver’s strong industrial demand and geopolitical uncertainties driving safe-haven investments, Silver ETFs (Exchange-Traded Funds) are gaining traction among investors.
Like Gold ETFs, Silver ETFs closely track the price of physical silver and require a demat account for investment. Analysts suggest buying on dips, given the positive market outlook.
Top-Performing Silver ETFs & Returns (Past One Year):
HDFC Silver ETF – 35.74%
UTI Silver ETF – 35.63%
Aditya Birla Sun Life Silver ETF – 35.47%
Kotak Silver ETF – 35.34%
DSP Silver ETF – 35.20%
Currently, India has around a dozen Silver ETFs, offering a diversified way to invest in the rising silver market.
Silver Outlook for 2025: What Experts Say
According to The Silver Institute, silver is set for a strong year in 2025, despite potential hurdles.
Key Growth Drivers:
Geopolitical tensions & trade uncertainties are driving safe-haven demand for silver and gold.
Portfolio diversification amid record-high US equities & public debt concerns is boosting silver investments.
Short covering by tactical investors has contributed to the recent price surge.
The Silver Institute’s statement:
“Despite headwinds from a firmer dollar and Treasury yields, investor sentiment towards silver has improved in early 2025, driven by geopolitical risks and fears about President Trump’s tariff plans.”
Challenges Ahead for Silver Investments
However, the report also warns of a key drag on silver’s growth:
Tariff hikes under Trump’s administration could impact global economic growth, particularly in China, affecting investor enthusiasm in industrial metals.
Even though silver’s industrial demand remains strong, these factors could limit aggressive investments in the coming months.
Will Silver Cross ₹1 Lakh Per Kg?
With rising industrial demand, global uncertainties, and increased investment interest, silver seems poised for further gains. However, potential trade restrictions and economic slowdowns could pose challenges.
For now, bullion traders and investors remain cautiously optimistic—watching closely to see if silver can break past the ₹1 lakh per kg milestone in the near future.
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