Silver is likely to emerge as one of the most dynamic assets in the Indian commodities market in 2025. With prices rallying, industrial demand soaring, and investors seeking alternatives to gold, the silver investment options are capturing investors’ attention. In this blog, we will explore silver’s current trajectory and the factors driving its momentum.
Current Silver Rates and Trends in India
As of 3rd June, 2025, silver prices in India are around ₹100 per gram, or ₹100,100 per kilogram, varying slightly across different cities.
Silver prices in India have shown some volatility in the recent past. In the past month, prices have been highly volatile, influenced by both international and domestic factors. For example, the 1 kg price in Delhi decreased ₹2,000 on May 2nd compared to the previous day.
Key Drivers of Silver Growth Trajectory in 2025
Silver in India is benefiting from a unique confluence of macroeconomic, industrial, and cultural tailwinds. Here are the key forces driving Silver’s strong performance in 2025:
Renewable Energy Demand
India is actively working towards achieving its target of 500 GW non-fossil energy capacity by 2030, while solar is expected to provide over 280 GW of that capacity. Silver plays a major role in achieving this target as it is used in photovoltaic (PV) cells for its superior electrical conductivity.
Industrial Demand
Silver plays an important role in various high-tech industries, and the Indian policy emphasis on sustainability is also driving the silver demand in India. Silver is used extensively in electronics due to its high conductivity.
With Indian electronics manufacturing and EV adoption increasing, silver in electronics will spike due to its use in various parts like circuit boards, sensors, and battery, etc.
Financialization and Investment Demand
India’s investment culture is transforming, with silver emerging as a legitimate financial asset, not just a physical commodity. Silver is increasingly being seen as an affordable way to invest in precious metals, especially for smaller retail investors looking to hedge against inflation.
The launch and growth of silver ETFs have democratized access to silver. Products like the Tata Silver ETF allow investors to gain silver exposure without the burden of storage and purity risks. As of January 2025, assets under management (AUM) in silver ETFs in India had crossed ₹13,500 crore.
Rupee Depreciation and Import Dynamics
India imports nearly 100% of its silver, making domestic prices highly sensitive to global rates and currency movements. The rupee at ₹84.78/USD in April 2025 has increased the landed costs of silver, adding to the domestic price surge.
A 6% basic customs duty, plus 3% GST, has added a further premium on imported silver, making investing in silver ETFs more cost-efficient for Indian investors instead of its physical possession.
Jewellery and Silverware Demand
India is the largest consumer of silver jewelry and silverware globally. Its imports of silver increased from 3,625 tonnes in 2023 to 7,000 tons in 2024, a sharp rebound from the pandemic years. This consumption is expected to further rise in 2025, driven by weddings, festivals, and rising rural incomes.
All these factors will contribute to the rising silver prices in the coming months, especially with gold prices also increasing significantly.
Conclusion
India’s silver story in 2025 is being supported by various factors like rising global prices, structural domestic demand, and increasing financialization through silver ETFs. With prices inching toward ₹1,00,000/kg and robust demand across both industrial and retail segments, silver stands out as a compelling addition to a diversified portfolio for an investor.
Other Articles
Smart Payroll Solutions for Entrepreneurs
