Silver continues to shine in 2025, with prices on the Multi Commodity Exchange (MCX) surging past the crucial ₹2 lakh per kg level on Friday. The white metal reclaimed this milestone after a brief dip in early trade, reinforcing its strong upward momentum.
Market participants believe silver prices may extend their rally, supported by firm global cues, robust industrial demand, and a weak Indian rupee, all of which are providing a favourable backdrop for precious metals.
Gold–Silver Ratio Signals Structural Shift
According to Axis Securities, one of the most significant indicators highlighting silver’s evolving market dynamics is the sharp compression in the Gold–Silver Ratio. Historically, this ratio has been used to gauge investor risk appetite toward silver.
In the current cycle, the ratio has fallen dramatically from lifetime highs near 105 to below 70 in 2025, pointing to clear relative outperformance by silver.
Fundamentals, Not Just Gold, Driving Silver Rally
Axis Securities noted that unlike earlier cycles—where silver typically rallied as a leveraged play on gold—the ongoing uptrend is being driven by strong underlying fundamentals. Rising usage in industrial applications, especially in clean energy, electronics, and manufacturing, has strengthened silver’s demand profile.
This structural shift suggests that silver’s rally in 2025 is not merely speculative but is rooted in sustained demand and improving supply-demand dynamics, positioning the metal as a standout performer in the commodities space this year.
