Silver is experiencing its most significant rally in several years. Silver prices have accelerated, approaching all-time highs hit decades ago.
The price of silver has jumped over 60% so far in 2025. From around $29.60 at the start of the year, silver trades around $47, inching towards creating an all-time high. Over the last 12 months, silver has been up over 46%. Whether Silver will be able to cross $50 to make an all-time historical high level in October 2025 remains to be seen.
Despite a scorching return in 2025, Silver is yet to break its previous all-time high level.
Silver reached an all-time high price of $48.70 per ounce in 2011 and is currently approaching its 14-year high price. In fact, on January 17, 1980, the price of silver reached an all-time high level of 49.95 per ounce. However, it was achieved by a dubious agreement between two individuals to corner the supply and increase demand.
Silver Market
US, China and India are big markets for Silver. India ranks as the second-largest market for physical silver investments, at times surpassing the historically dominant US market.
Despite high prices, India’s silver imports nearly doubled from August to September despite record-high prices, reports Kitco.
Silver price today in India is Rs 1,44,380 per 1 kg and Rs 1,443.80 per 10 grams, which is unchanged from the previous close. The price of 1 gram silver today is Rs 144.38 per gram, and 100 grams of silver is priced at Rs 14,438.
Silver Demand
In 2025, demand for silver is expected to exceed supply, potentially stabilizing prices for the fifth consecutive year. With an annual turnover of approximately $30 billion, the small size of the silver market means that even minor demand changes can significantly influence price.
Physical investment is a crucial and volatile component of global silver demand, fluctuating significantly over the past 15 years, from a low of 157.2 million ounces in 2017 to a peak of 337.6 million ounces in 2022, according to The Silver Institute.
Industrial use of Silver is boosting the demand for gold’s close cousin. Higher solar power adoption has increased the appeal of Silver, with China’s solar installations rising in August. Even the Silver’s industrial demand is strong, particularly in consumer electronics and data centers.
Fresh Triggers
The fresh triggers for Silver appear to be the US government shutdown that is fuelling safe-haven demand for precious metals after lawmakers failed to reach a temporary funding deal.
The US Department of the Interior, through the US Geological Survey, has suggested adding silver to the USA’s list of critical minerals. This change, by itself, is predicted to increase interest in silver.
According to reports, the Saudi Central Bank and the Russian government have shown increasingly higher interest in the purchase of physical silver.
As geopolitical tensions rise and US government debt increases, investors perceive silver as undervalued relative to gold, potentially affecting its price.
“Industrial uses from solar panels to electric vehicles and electronics continue to expand, anchoring long-term demand. The market is in its sixth consecutive supply deficit month, while mine output remains constrained and above-ground inventories continue to shrink. These fundamentals are expected to support international prices in the range of $44 to $50/oz, with potential spikes toward $55 if macro risks intensify,” says Jigar Trivedi, Senior Research Analyst at Reliance Securities.