Gold vs Silver Outlook on Akshaya Tritiya: Across the country, people traditionally buy gold on Akshaya Tritiya. This day is not only religiously significant but is also considered quite special from an investment perspective. In 2025, this festival falls on April 30th. On this occasion, many people are wondering that after the tremendous surge seen in gold in the recent past, should one still invest in gold? Or will silver surpass gold in terms of giving returns on investment in 2025? To put it directly, can silver give better returns to its investors than gold in the current situation?
Will Silver become the real star in 2025? According to Satish Dondapati, Fund Manager at Kotak Mahindra AMC, “Gold has so far remained investors’ preferred option for safe investment, but the demand for silver has also remained continuously strong, due to which it has also created a record of ₹1,01,999 per kg in 2025. The special thing is that silver’s industrial demand and limited supply are making it very attractive for investment.” He explains that even though silver is traditionally called ‘poor man’s gold’, its use in industries like electronics, renewable energy, and high-tech manufacturing is making it a very strong option for investment.
Historical performance of silver in a bull market According to Satish, historical data shows that whenever there is a bull run in the precious metals market, silver often outperforms gold. During the pandemic in 2020, silver jumped by about 63%, while gold increased by less. A similar trend was seen in 2024 as well, where gold jumped by about 26%, while silver quietly gained 34%. This trend can be repeated in 2025, which could make silver surpass gold once again in terms of returns.
Industrial demand is a big reason for strength in silver While the price of gold is mainly based on its monetary role, a large part of silver is used in modern technologies. In 2025, global industrial demand is expected to be more than 700 million ounces. The biggest contribution to this comes from the solar energy sector, which alone accounts for about 15% of the total silver consumption.
There is tremendous demand for silver in modern technologies like Artificial Intelligence, Electric Vehicles, and high-performance chips as well. Its high electrical conductivity makes it extremely essential for technical applications, due to which it has become one of the most demanded metals in 2025.
Impact of silver’s demand-supply gap According to Satish Dondapati, the supply of silver has been continuously lower than the demand for the past few years. In 2024, this deficit was more than 200 million ounces. This trend of demand and supply gap is expected to continue in 2025 as well, which could lead to further तेजी (rapid increase) in prices. This situation of increasing demand and decreasing supply can be a profitable deal for investors.
Monetary factors are also supporting silver Apart from industrial demand and supply gap, the global economic conditions also seem to be in favor of silver. Satish Dondapati believes that “silver is also affected by factors like inflation, central bank policies, and currency devaluation, just like gold.” In 2025, there is a possibility of the US Federal Reserve cutting interest rates, which could provide the same support to silver as it received during previous monetary easing. Rising global debt and fiscal instability are also making silver a safe haven asset.
What is the indication of the gold-silver ratio? Satish explains that although the Gold-Silver Ratio (GSR) has come down from its one-year high level, it still stands at 88.9, which is much higher than its historical average of 60. This indicates that silver is currently undervalued compared to gold and has a higher potential to go up. Even during economic crises like 2008 and 2020, when this ratio increased, silver showed tremendous तेजी (rapid increase) afterwards.
Can silver create a record of returns in 2025? If you are thinking of investing this Akshaya Tritiya, then silver has emerged as a strong contender. Satish says that the rapid increase in industrial demand, supply shortage, and monetary support can make it the real star of 2025. Although gold will also remain a strong and reliable long-term investment, it is also important to consider silver for portfolio diversification.