Silver shines brighter than gold! ETFs double investors’ money with 102% returns; what’s next for investors?

Silver has emerged as the standout performer of 2025, delivering an average 102% return to investors through ETFs, according to an ET report. Once overshadowed by gold, the white metal is now trading near Rs 1.8 lakh per kg in the spot market, with analysts projecting domestic prices could reach Rs 2.46 lakh in the long term.The metal’s performance this year has outpaced traditional assets, with gold ETFs returning 63% and benchmark indices Sensex and Nifty rising just 6–7%. Internationally, silver hit a record $53.60 per ounce on Tuesday, while MCX December futures reached Rs 1,62,700 amid a tight physical market and rising premiums due to global shortages, ET report quoted.“Unlike past speculative surges in 1980 and 2011, this rally is backed by enduring demand from green energy initiatives and technology sectors such as EVs, solar, and 5G,” Motilal Oswal analysts noted. “Crossing the $50 mark is not just a technical milestone but reflects a structural repricing needed to match constrained supply with rising demand.”The brokerage expects prices to consolidate between $50 and $55 over the coming months, with potential peaks at $75 per ounce by 2026 and $77 by 2027 on COMEX. Assuming an average USDINR of 90, this translates to Rs 2.4 lakh by 2026-end and Rs 2.46 lakh domestically.Global supply constraints continue to support silver’s rise. Approximately 70% of the metal is produced as a by-product of mining zinc, lead, copper, or gold, limiting output flexibility. The Silver Institute projects that 2025 will mark the fifth consecutive year of structural market deficit, with a shortfall of around 118 million ounces. Industrial demand, driven by green economy applications, is expected to rise 3% this year.Nomura analysts warned of potential short-term dips but highlighted them as “opportunities for investors to capitalise on silver’s unprecedented fundamentals.” Bank of America has also raised its silver target to $65, despite anticipating an 11% drop in demand next year, citing persistent supply shortages, according to an ET report.Investor enthusiasm is growing beyond institutions. Personal finance author Robert Kiyosaki has endorsed silver, calling it and Ethereum “hot, hot, hot,” predicting the metal could reach $75 per ounce after recently breaching $50.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)