Still Only Looking at Gold? You Might Be Missing Silver's Real Potential. How to invest in Silver and more...

Silver demand has increased substantially, growing at an estimated annual rate of 16-17%.

While gold often steals the spotlight in the precious metals conversation, silver is emerging as a compelling investment alternative. Recent market trends, coupled with evolving industrial applications, are painting a potentially bullish picture for this versatile metal.

Let's start by looking at recent performance. 

Over the two-year period from 8th May 2023 to 8th May 2025, both gold and silver have delivered significant returns. However, gold has taken the lead:

• Gold prices surged from approximately $2,021/oz to $3,337.6/oz representing a substantial gain of around 65%.

• Silver (per g) prices also increased, moving from $21.05/oz to $32.45/oz which translates to a return of approximately 54%. 

• For context, the Nifty index rose by 33% during the same period.

  (3:30pm 8th may, 2025 )

This data shows that while gold has outperformed both silver and the Nifty, silver's performance has still been noteworthy, slightly edging out the broader market index.

To understand silver's potential, it's crucial to consider its cyclical nature and historical price movements. Silver has a history of experiencing major bull runs, often driven by a combination of economic factors and investor sentiment. One such significant bull run occurred roughly between 2004 and 2011, lasting approximately 6-7 years. However, this uptrend was interrupted by the global financial crisis of 2007-08. Following that peak, silver entered a prolonged downtrend from 2011 to 2016. Subsequently, prices stabilized somewhat, fluctuating primarily between $15 and $20 per ounce from 2016 to 2021.

More recently, since late 2022, silver has embarked on what appears to be a mini bull run. This uptrend is characterized by an ascending channel pattern on technical charts, indicating a series of higher highs and higher lows. This pattern is often interpreted by technical analysts as a sign of continued bullish momentum, suggesting the potential for further price increases.

A key factor supporting this positive outlook for silver is the dynamic interplay of supply and demand. Over the past decade (2015-2024), silver supply has remained relatively constant. However, the demand side of the equation has undergone a significant transformation, particularly since 2022. Overall silver demand has increased substantially, growing at an estimated annual rate of 16-17%. Pre-2022, annual demand figures typically ranged from 900 to 1100 million ounces. In contrast, from 2022 to 2024, demand has consistently exceeded 1200 million ounces.

A major driver of this increased demand is the growth in industrial applications of silver. Industrial demand has risen by approximately 11% overall. Within this category, the electrical and electronics sector has witnessed a particularly strong surge, with demand growing by around 20%. The photovoltaic (PV) solar cell industry has experienced even more explosive growth, with demand skyrocketing by approximately 64%. Furthermore, emerging sectors such as electric vehicles (EVs), 5G technology, and healthcare and medicine are contributing to the rising demand for silver due to its unique properties. 

Industry insights and market sentiment further reinforce the bullish outlook for silver. Management at Hindustan Zinc Limited, for example, has noted a significant increase in silver consumption for industrial purposes. The prevailing sentiment in the market is positive regarding silver's industrial demand, and the overall price trend is expected to be generally bullish over the medium term, although some volatility with price fluctuations is anticipated.  

How can you Invest in Silver ?