According to the Silver Institute, the demand for global silver in 2025 is estimated to be more than 1.2 billion Ounce tuna, which runs by a crucial role in its solar energy, electric vessels (EV) and industrial drug electronics. Globally, Silver by July 2025 by 18% Yoy. Trades around 32.50/z ts (7 2,700 per 10 grams). In India, prices have exceeded 000 90,000 per kilogram, which is more than 20% year-by-year-year increase, leading to many traditional investment equipment, such as FDS and short-term gold returns.
What is the rise of silver?
1. Push the clean energy room
India’s ambitious renewable energy goals targets -2030 by 500 GW of non-indulgent fuel capacity, is it a major investment in solar infrastructure, where silver is a major material. Each solar panel uses 15-20 grams of silver, and the demand is expected to increase with the government’s production linked incentive (PLI) schemes in renewable and semiconductors.
2. EV adopted in India
According to the Policy Commission, India aims 30% EV penetration in private vehicles by 2030. EVS uses 2-3x more silver, especially in connectors and control systems than internal combustion vehicles. This will significantly increase the consumption of domestic industrial dysfunction silver.
3. Hedge against inflation and rupee weakness
Domestic inflation is more than an average % %, and the rupee moves close to ₹ 84/USD, giving hedges against both silver power erosion and currency depreciation. Unlike gold, silver also benefits from the Industrial Dysfunction Utility, providing dual sidewalk potential.
4. Limited home supply
India imports more than 60% of its silver needs, making it very sensitive to global supply-demand shifts. Globally mining outputs are stable and industrial dysfunction, with prices tend to be firm or upward in the medium term.
Investment Method for Indians:
Indian investors now have many regulatory and accessible ways to invest in silver:
Silver ETF: Introduced in 2022, this growing traction is watching. The total assets under Management (AUM) in Indian Silver ETF increased more than 70% YO (AMFI, Q2 2025).
Silver Futures: MCX Silver and Silver Mini Agreement provides high fluid. Trading volumes have increased by 35% in the past year, reflecting the interest of investors in the short to medium -term silver price movement.
Digital Silver: Offered by Fintech platform, especially for small investors allows fractional ownership and ease of purchase/sale.
Physical silver: Coins, bars and jewels still have cultural and emotional value – especially during Akshaya Trisia, Dhanteras and Weddings.
Possible Sovereign Silver Bonds: If the sovereign gold bonds (SGB) are introduced on the lines, they can offer attractive fixed returns with praise and tax benefits.
Risks to being awake:
When the fundamentals look stronger, silver is naturally more unstable than gold. Key risks include:
- Price swing due to global economic data or Fed policy
- Geographical stress affecting imports
- Speculative trade in futures markets
Investors are advised to keep silver as part of a diverse portfolio based on risk hunger and time horizons.
Conclusion:
As India accelerates its clean Energy and EV pressure, silver is about to play a crucial role – not only in the industry, but also in the creation of wealth. For Indian investors who find alternatives beyond gold, stocks and FDS, silver offers the opportunity to participate in the next Industrial Dysfunction and Economic Wave – with inflation protection and additional glow of global tailwinds.
(Author, Indrabir Singh Jolly PL is CEO in Wealth Management)
(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)
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