Could 2025 be the year silver takes center stage as demand surges across industries?

Could 2025 be the year silver takes center stage as demand surges across industries? With its unique blend of industrial utility and investment appeal, silver is gaining renewed attention. From solar panels and electric vehicles to electronics and healthcare, its applications are expanding rapidly. As the global push for green energy accelerates and supply dynamics tighten, silver's strategic importance is growing. Investors and industries alike are watching closely—could silver be the metal story of the year?

"Several converging factors are providing tailwinds to silver's price trajectory. Industrial silver demand is projected to exceed 700 million ounces in 2025, driven by technological transformation," said Samit Guha, Chief Financial and Technology Officer (CFTO) at MMTC-PAMP India Private Limited. "Moreover, silver’s unique properties—exceptional electrical conductivity and antimicrobial characteristics—make it irreplaceable in many high-tech applications. Therefore, discerning investors are increasingly viewing silver as an attractive portfolio diversification option, particularly during periods of reduced economic opportunities," he added.

Additionally, various estimates suggest global silver demand of approximately 1 billion ounces against a supply of around 850 million ounces, leading to silver’s appeal as an investment option, with market analysts projecting silver prices to reach $35-$40 per ounce this year. Some forecasts project it to surpass gold's returns in the coming quarters.

Furthermore, the pivot towards green technology, not just in India but globally too, is strengthening the demand for this metal. The rapid acceleration of solar installations globally has significantly increased silver consumption. Modern solar panels now use up to 120% more silver per kilowatt compared to older models.

Auto and electronics manufacturers are increasingly driving demand for silver. Its exceptional electrical conductivity makes it an ideal metal for enhancing battery performance in EVs and for use in components of smartphones, computers, and other consumer devices. Meanwhile, the healthcare industry utilises silver's antimicrobial properties in medical devices, wound dressings, and various healthcare applications.

The supply-demand outlook

As 2025 progresses, silver appears uniquely positioned at the intersection of technological innovation and investment demand. With global adventures evolving this year, silver serves as a hedge against inflation and monetary devaluation. Its duality for industrial use and investment options serves as a value addition for any discerning investor.

Guha said, "Looking ahead, the continued orientation towards solar energy installations will demand larger quantities of silver for photovoltaic cells. This sector alone accounts for approximately 15% of global silver consumption. EV adoption is projected to drive an increasing demand for this metal in batteries and automotive electronics. New and emerging technologies will provide tailwinds for its demand." According to a report, industrial fabrication accounts for over 55% of total silver demand.

"For investors considering portfolio diversification, silver offers an intriguing dual proposition—industrial utility combined with precious metal investment appeal. While gold remains primarily an investment vehicle, silver's substantial industrial demand provides additional support for its long-term value proposition," said Guha.

Besides, Anindya Banerjee, SVP: Head of Research:  Currency, Commodity & Interest Rates, Kotak Securities, said "The exclusion of gold and silver from the proposed tariffs also removed the tariff-related premium that had been priced in earlier. Going forward, we expect silver likely to trade in a broader range of ₹84,000 to ₹96,000 over the medium term."

Silver's growing industrial applications in green technologies, coupled with its investment appeal as a safe-haven asset, positioning it well for significant gains in 2025. The overall outlook suggests that silver could indeed take centre stage this year as demand surges across industries.