Silver rally forecast: Silver prices are continuously climbing in 2025. The major reason for this is the intensity of global industrial demand and a continuous decrease in supply. Vice President and Fund Manager Satish Dondapati at the Kotak Asset Management Company (Kotak AMC) believes that this boom points not just a temporary bounce, but a long -time structural changes.
Gold-silver ratio dropped
According to Dondapati, ‘The biggest reason for the recent surge in silver prices is the obstacles in industrial demand and supply, which have increased further with geopolitical instability on the world.’
An important indicator, Gold-Silver Ratio has fallen from 100 to about 93. It tells how much ounces silver will be engaged to buy an ounce of gold. Historically, this ratio remains around 60.
How much silver can increase
Silver is $ 36.21 in the international market on Wednesday (June 25). If the gold-silver ratio again goes to the same level and the gold remains around $ 3,400 an ounce, the silver price can reach $ 48.57 an ounce. Accordingly, silver price may rise 34.13%.
If we talk about the Indian market, then silver here on Wednesday was ₹ 1,08,900 per kg. If its prices rise 34.13%, then it can go up to ₹ 1.46 lakh per kg.
Industrial demand became major driver
Dondapati says, ‘Silver is still underwelled compared to gold. Silver dual nature, which is an industrial metal with precious metal, is increasing its demand. ‘
Today, more than 50% of global silver consumption comes from industry such as solar energy, electric vehicles and electronics. A solar panel contains an average of 20 grams of silver. Apart from this, silver is used in EV batteries, wiring, sensors and even artificial intelligence (AI) technology.
Investors’ interested in supply crisis
2025 will be the fifth consecutive year when global silver supply will be seen. This year, about 14.9 million ounces of ounces are estimated to be lacking. Stores are decreasing in the main producing countries such as Mexico and China. The recycling rate is stable and the quality of the ore is falling in mining. From above, business tariffs and geopolitical stress are making global supply chains more difficult.
Dondapati believes that silver attraction is also increasing from the attitude of investment. He said, “It is more accessible than gold due to low price. Increasing availability on digital platforms has also drawn young investors to it.”
What can happen in the next 6–12 months?
According to experts, silver prices may rise further in the coming 6 to 12 months. The reasons are- strong industrial demand, weak US dollars, limited supply and positive macroeconomic trend.
However, Dondapati also warns that interest rates fluctuations, dollar strengthening, or decline in industrial demand may hold this bullish trend of silver.
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