Silver rates outlook: Will the precious white metal outshine gold prices in 2025?

Silver prices continue to rally, establishing themselves as a compelling investment option due to silver’s unique dual role as both a precious metal and a critical industrial resource. The white metal has recorded impressive gains, with a peak increase of nearly 36% and a year-to-date (YTD) rise of 25%. Although prices have retraced from their peak, the underlying fundamentals remain strong. Supported by increasing industrial and financial demand, analysts predict silver prices are likely to outperform gold in 2025.

The global silver market has been facing a persistent supply deficit, primarily driven by mining disruptions. This constrained supply, coupled with rising industrial demand, has significantly contributed to the rally in silver prices. Industrial applications now account for a dominant 55.8% share of global silver consumption, underscoring its importance across various sectors.

While short-term volatility may persist, analysts maintain a positive long-term outlook for silver and other bullion metals, driven by robust demand and constrained supply dynamics.

“The gold-silver ratio is dropping and is now below the 90 level. Economic stimulus measures in China, along with interest rate cuts by several global central banks, including the U.S. Federal Reserve, are expected to drive increased industrial demand and consumption for silver. Additionally, financial demand for silver is on the rise, supported by robust ETF buying. These factors collectively contribute to our bullish outlook on silver prices,” said Ajay Kedia, Director of Kedia Advisory.

Furthermore, Kedia noted that as gold prices become increasingly expensive, investors may turn to silver as a more affordable alternative.

Silver Price Outlook

Kedia forecasts a double-digit growth of approximately 15%–20% in silver prices over the next year. He anticipates a strong performance in the first half, followed by some correction in the second half due to profit-booking.

“MCX Silver price target for the next year is ₹1,30,000 per kg, while MCX gold prices may remain around ₹85,000 per 10 grams in 2025,” Kedia said.

Analysts at Choice Broking noted that the global silver market is expected to stay in deficit, driven by strong growth in photovoltaic applications, the expansion of 5G and the electronics sector pushing industrial demand to record levels, further supporting silver’s price trajectory.

“We recommend buying silver at the current levels or accumulating if it dips by 1% to the downside. With strong near-term demand prospects, we anticipate a price target of 10-12% upside from current levels in the near term,” Choice Broking analysts said in a report.

Technicals

MCX Silver March futures have traded in Rising channel formation on Weekly chart. The price has remained over all key averages i.e. 50, 100 and 200-DMA levels placed at 91,552, 90,037 and 86,688 respectively. Daily SAR (Stop & Reverse) level is placed at 90,897, said Aamir Makda and Gyan Singh, Commodity Analysts at Choice Broking.

On the other hand, the key hurdle is placed at 97,344, and breaching this level will accelerate upward momentum in Silver and the next hurdle would be at 100,081. The Relative Strength Index (RSI) on all major timeframes is above the 50 level, indicating bullish sentiment.

The outlook for Silver is Sideways to Bullish. Traders are recommended to buy Silver at the current market price or on dips to 90,900. A stop-loss can be placed below 85,300 and a target of 103,000, the analysts said.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.