Silver Price Outlook: Right Time To Buy? Analysts Forecast 15–20% Return In 2 Years
Last Updated:July 29, 2025, 14:56 IST
Silver Price Outlook: Silver hits a 14-year high due to demand and supply issues amid geopolitical uncertainty.
Despite a slight dip in overall silver demand in 2024, industrial use hit a record high for the fourth straight year, growing 3.6% year-on-year.
Silver Price Outlook: Silver has appreciated substantially in the past few months by reaching a 14-years high amid the rising demand and supply crunch in the geopolitical uncertainty triggered by tariff war and conflicts between nations.
Gold is long been considered as a safe bet when times are tough. But in recent times, the interest for silver also grew among investors.
In this situation, silver is emerging as a strong contender in investor portfolios, offering a rare combination of monetary resilience and industrial utility.
A new report by wealth advisory firm Client Associates (CA)suggests that the metal could deliver 15–20% returns over the next 12–24 months, driven by growing industrial demand and a persistent supply-demand mismatch.
Its report, The Investment Case for Silver, outlines how silver is transitioning from a traditional store of value to a modern asset class linked to key sectors like solar power, electric vehicles, semiconductors, and 5G.
“Silver is no longer just a precious metal—it is a modern asset class backed by industrial relevance and historical trust,” said Nitin Aggarwal, Director – Investment Research and Advisory at CA. He added that silver’s ability to offer both tactical alpha and portfolio diversification makes it highly relevant in the current environment.
Despite a slight dip in overall silver demand in 2024, industrial use hit a record high for the fourth straight year, growing 3.6% year-on-year. Supply has failed to keep pace, leading to a deficit of nearly 149 million ounces, which is expected to persist in 2025.
The report notes that silver remains undervalued compared to gold, with the gold-silver ratio at around 90—well above the historical average of 68. It also highlights silver’s low correlation with equities and moderate link with gold, making it a strategic diversifier.
It has low correlation with Indian equities (0.21 with the Sensex) and a moderate correlation with gold (0.72), allowing it to complement both equity-heavy and gold-heavy portfolios. Over longer horizons, gold and silver returns tend to converge, but silver offers higher short-term return potential—albeit with greater volatility and sharper drawdowns, it added.
How To Invest In Silver
The report also explores suitable investment vehicles for silver exposure. For investors with Demat accounts and shorter investment horizons, Silver ETFs are a cost-efficient and tax-advantaged route. For larger allocations and longer holding periods, Silver ETF Fund-of-Funds (FoFs) provide greater liquidity and ease of access without requiring a Demat account.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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