New Delhi, Dec 27 Silver has delivered exceptional returns of 158 per cent year‑to‑date (YTD) in 2025, with domestic spot rates rising nearly Rs 1,45,000 per kg or around 170 per cent this year.
Strong industrial demand, tight supply, robust ETF inflows and US Federal Reserve rate cuts and hopes of additional cuts could even take silver to $100 per ounce, analysts said.
Industry experts said that key demand drivers for silver include industrial use in electric vehicles, solar, semiconductors and data centres.
Further a multi‑year structural supply deficit — 148.9 million ounces in 2024, has buoyed investor sentiments along with expectations of further Fed easing of 0.75 per cent and at least two rate cuts next year. A weaker dollar, geopolitical tensions are also boosting precious‑metal demand beyond industrial use.
Geopolitical tensions have increased due to the US blockade of Venezuelan crude, Russia-Ukraine hostilities, and US military strike against ISIS in Nigeria. The US Coast Guard this month seized a super tanker under sanctions carrying Venezuelan oil and tried to intercept two more Venezuela‑related ships over the weekend heightening tensions.
MCX silver March futures had touched an intraday high of Rs 2,32,741 per kg on Friday. Several analysts now view the $100 per ounce milestone as attainable in 2026, with the majority of them predicting $70–$85 per ounce range for silver next year, adding that silver’s high‑beta nature could accelerate gains once major resistance levels are breached.
Regarding silver's outlook in 2026, a recent report from Axis Mutual Fund warned overvaluation could lead to ETF outflows or a downturn in copper could also weigh on prices.
“Overall, our outlook for silver is constructive with multiple tailwinds sustaining its rally even as valuations stretch,” the report said.
Central Banks’ preference for gold over silver may limit its official demand support. Possible substitution in industrial uses also poses a risk.
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