News

Silver Price Prediction: Silver, often known as “poor man’s gold”, is gaining popularity among Indian investors. According to market expert Ajay Kedia, silver is slowly emerging as a promising alternative to gold, especially for middle-class investors seeking better long-term returns and portfolio diversification.

Kedia explained that while gold has traditionally been a preferred store of value, silver is now catching up. “Silver is not only a precious metal but also an industrial metal,” he said.

The growing demand for electric vehicles (EVs), solar panels, and 5G technology has increased industrial consumption of silver significantly.

Add Zee Business as a Preferred Source

Additionally, central banks in countries like Russia and Saudi Arabia have started increasing their silver holdings. Indian investors are also showing more interest in the metal, partly due to increased awareness and accessibility through ETFs and mutual funds.

To compare both metals, Kedia pointed to the gold-silver ratio, which measures how many ounces of silver equal one ounce of gold in value.

“Right now, the ratio is around 81. Historically, whenever this ratio moves below 70, silver has outperformed gold,” he said.

During the COVID-19 period, this ratio shot up to 120, and in April 2025, it reached 107. Kedia believes the long-term ratio will likely move toward 70 or below, indicating that silver could offer better returns in the coming years.

Despite a 70% rise in silver prices in the past year, Kedia expects some short-term correction, which he views as an opportunity for long-term investors.

According to Kedia, around 56% of silver demand now comes from the industrial sector. This includes its use in electronics, solar energy, and green technologies.

“On one hand, we are seeing a supply deficit for the fifth consecutive year. On the other hand, industrial consumption is increasing. This combination makes silver an attractive bet,” he said.

He also noted that interest rate cuts across major economies could further boost industrial activity and silver consumption.

“India and China’s imports of silver are already rising. These macroeconomic trends point to a strong demand cycle ahead,” Kedia added.

Kedia highlighted that the global silver market has been in deficit for five years, and the situation may persist. “This rally can continue for another five years if the supply side does not improve,” he said.

In the last two and a half years, silver investments by family offices have doubled. Kedia expects that momentum to remain strong as both industrial and investment demand continue to rise.

On price projections, Kedia noted that silver has already gained 70% in a year, making it one of the best-performing commodities. He expects a short-term correction of about 8–10%, after which the next leg of the rally could begin. “In the next one year, silver can touch around Rs 1,55,000 per kg,” he predicted, though he advised investors to wait for dips to enter.

Kedia said the main drivers for silver prices will be:

- Supply deficit, which continues to tighten the market.

- Industrial demand, particularly from renewable energy and electronics.

- ETF and central bank buying, which adds investment demand.

He added that the US listing of silver as a critical metal has further strengthened its importance in the global market.

Silver Exchange-Traded Funds (ETFs) were launched in India in 2022, and since then, investor interest has grown rapidly. “Earlier, people used to buy gold and silver only for consumption, not investment. Now, with ETFs and mutual funds, investing has become easy and low-cost,” Kedia said.

In the last three years, returns from silver have been strong, making it an attractive diversification option. According to Kedia, adding silver and gold to an equity portfolio improves stability, especially during times of geopolitical tension or market corrections.

Traditionally, experts suggested a 5% allocation to precious metals. But Kedia believes that number should now rise. “With new products and high returns, I suggest increasing the allocation to 15–18% conservatively,” he said.

For balanced portfolios, Kedia recommends allocating 20–25% to gold and silver combined, with silver taking a larger share due to its higher growth potential. “Around 20% in silver within your total investment portfolio can give better returns and reduce volatility,” he concluded.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

Prior to joining Zee Business, he w ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.