Silver has quietly maintained its position as a trusted investment for decades. This precious metal has remained largely stable even during periods of volatility, inflation and global uncertainty. In the long run, silver’s performance has been impressive, making it an attractive option for investors looking to diversify beyond stocks and bonds.
If a person had invested Rs 10,000 in silver in the year 2000 and held it for 25 years, the value of that investment would stand at around Rs 2,64,550 today. This represents a 26-fold increase, highlighting the benefits of long-term investing and silver’s ability to preserve and grow wealth over time.
According to a Forbes report, the average price of silver in India in 2000 was approximately Rs 7,900 per kg. Today, silver is trading near Rs 2.17 lakh per kg, delivering returns of over 2,600% to long-term investors.
Like gold, silver has acted as a strong hedge against inflation and market volatility for the past four decades. During periods when stock markets delivered negative returns, silver helped stabilise investor portfolios. A recent Yes Bank report noted that silver is not only a safe-haven asset but also a key component in sectors such as artificial intelligence, data centres, clean energy, electric vehicles, and defence programmes.
The United States has declared silver an essential mineral, while China’s silver reserves have dropped to a decade low, supporting higher prices globally. Silver touched record highs in 2025. Spot silver crossed the $70 mark for the first time on Tuesday, December 23. In India, silver prices surged 1.7% to a new high of Rs 2,16,596 per kg on the MCX. Notably, silver has outperformed gold this year. While gold has gained 76% in the spot market, silver prices have risen by nearly 140% so far.
The rally is being driven by several global factors, including geopolitical tensions between the US and Venezuela, expectations of a US interest rate cut, and a weakening dollar. Mining disruptions and limited inventories have also tightened supply, with the global silver shortage estimated to exceed 2,500 tonnes annually.
Although silver is more volatile than gold, it is increasingly strengthening its position as a key long-term portfolio diversifier.