Silver is catching up with gold after gaining almost 6% over the last month. Comparatively, gold prices have remained flat to negative over the same period.
Silver currently trades at $38, jumping over 31% in the last year and the industry experts are still bullish on the gold’s close cousin.
Client Associates (CA), India’s leading multi-family office, managing over $6.1 billion in assets for more than 1100 HNIs and Ultra HNIs, released its detailed report on silver with an in-depth analysis of demand and supply in the current environment.
According to CA, silver makes a powerful portfolio diversifier, with the potential to deliver 15–20% upside over the next 12–24 months.
Client Associates’ analysis reveals that silver prices are bolstered by a persistent supply-demand mismatch, with 2024 marking the fourth consecutive year of a silver market deficit, expected to persist into 2025 due to industrial growth and limited mining and recycling capacity.
Demand-Supply
In 2024, silver demand declined by 2.8% due to weak net physical investment, silverware, and photographic applications. However, industrial demand increased by 3.6%, marking a fourth consecutive record high and supporting silver prices. Global silver demand has grown at a 2% CAGR from 2016 to 2024.
Despite a 1.7% increase in global silver supply in 2024, total demand of 1,160.1 Moz resulted in a supply deficit of approximately 149 Moz, marking the fourth consecutive year of a silver market shortage.
Gold-Silver Ratio
The Gold-Silver Ratio, which measures how many ounces of silver buy one ounce of gold, has remained above its long-term average of approximately 68.
Historically, this ratio tends to revert to its mean of around 68:1, but since a strong gold rally in early 2024, the ratio has declined, leading to silver outperforming gold. As of July 30, 2025, the ratio stands at approximately 87.
The report from Client Associates predicts the silver’s current levels could provide 15-20% upside over the next 1-2 years, influenced by supply-demand dynamics, global growth trends, and the gold-silver ratio.
Silver rate today in India is Rs 1,13,900 for 1 kg. while the gold rate today in India is Rs 90,466. For the first time in 2025, gold touched an all-time high price of Rs 1,00,130 for 10 grams in the spot market.
While the forecast is positive, the report highlights several important risks, including prospective increases in mining supply, a slowing of global industrial growth, and the possibility of material substitution in applications such as electronics and solar panels.