Key Points
Silver demand surging in solar and tech industries
Supply deficits continue for fifth consecutive year
Industrial applications driving silver's value upward
"We anticipate that silver will outpace gold, gaining 23 per cent over the coming year compared to gold's projected 17 per cent increase (Q4 2024 to Q4 2025)," the report added.
"We remain optimistic about its potential, with supply deficits and increasing industrial demand acting as strong tailwinds," the report said, answering the question on whether the fortunes of silver is set to change in 2025.
According to the report, there has been a shortage of supply for silver for four years in a row, and 2025 will probably be the fifth.
Above-ground inventory is depleted by deficits, and even while there is still plenty of inventory, investors hold a large portion of it and demand higher prices to encourage sales.
Industrial demand for silver has reached record highs, driven by increasing usage in photovoltaic (solar panel) applications, 5G technology, and automotive electronics. Photovoltaic installations are expected to set another record in 2025, further boosting silver demand, the report added.
Additionally, technological advancements have led to the mass production of higher-efficiency N-type solar cells, which require greater silver content.
Beyond renewable energy, the expansion of data centres and artificial intelligence applications in 2025 is set to further increase silver demand.
In the automotive industry, the growing use of electronic components and investment in battery-charging infrastructure will continue to support silver consumption, the report added.
The prices of silver in the international markets have witnessed an uptick due to the industrial demand and global uncertainties.
Until mid-December 2024, silver was on track to outperform gold. However, a sudden contraction in the final two weeks of the year allowed gold to overtake silver, closing the year up 27 per cent, while silver finished with a 21 per cent gain.
Silver has been undervalued, relative to gold, with the gold-to-silver ratio surpassing 90 in January 2025 before beginning to decline.
"Historically, this ratio has faced resistance around 92, followed by sharp corrections in silver's favour. This technical indicator suggests silver may be poised for another upward move," said the report.
In the Indian markets, silver prices are heavily dependent on factors such as the global economic conditions, Rupee-Dollar exchange rate and government policies on trade.
The price of silver per kilogram has reached the level of RS 1,03,000 in India.
