Silver outshines Gold in 2025; What’s powering the record Rally?

Synopsis: Silver has surged to record highs in 2025 ahead of Gold, driven by rate cut expectations, tight supply, and strong industrial demand. Analysts see key resistance around ₹1,85,785/kg and support near ₹ 1,77,853/kg, reflecting continued market momentum.

Silver has surged to record highs in 2025, outpacing gold and surprising investors. This year, the white metal has been a top performer, posting a 107% year-to-date gain, significantly surpassing gold’s 59% increase. In this article, let’s explore the reasons that are fueling the Rally.

Silver climbed above $60 an ounce for the first time, reaching a new record high of $60.9213 on Wednesday, following a 4.3% increase in the previous session. Traders were driven by expectations of further monetary easing and ongoing concerns over tight supply.

What’s Fueling Silver’s Historic Rally?

Rate Cut Hopes 

An Expectations that the Federal Reserve might cut interest rates in December have lifted investor confidence, and the lower rates make it less costly to hold assets like silver and making it more attractive to Investors.

With the Fed’s decision approaching and a rate cut looking more likely, analysts expect gold and silver prices to rise. According to CME FedWatch, there’s an 89.4% chance that rates will be reduced by 0.25%.

Supply Concerns

Silver is entering its fifth consecutive year of supply constraints, a trend that is being further intensified by an unprecedented shortage in London observed in October. At the same time, inventories in Shanghai are hovering near their lowest levels since 2015, highlighting and adding momentum. 

Robust Industrial Demand 

Over the past eight years, industrial demand for silver has seen consistent growth, propelled by its critical use in industries such as electronics, solar energy, and electric vehicle components, underscoring silver’s rising importance in the global transition toward clean energy and advanced technology.

In 2016, global silver demand stood at approximately 489.5 million troy ounces and by 2024, it is projected to rise significantly to around 680.5 million troy ounces, reflecting a substantial increase in consumption over the eight-year period.

Supported by robust fundamentals and favorable macroeconomic trends, silver’s surge highlights its unique position as both a critical industrial metal and a safe-haven investment, setting the stage for it to emerge as one of the standout performers of 2025.

Analyst Viewpoint

Geojit Investment analyst said, a day before the Fed decision, that silver March futures could face immediate resistance (a price level where it may struggle to go higher) at Rs. 1,83,141 per kg. If the price rises further, the next resistance levels could be Rs. 1,84,540 and Rs. 1,85,785.

On the other hand, silver has immediate support (a price level where it may stop falling) at Rs. 1,80,497 per kg. If the price drops further, the support levels could go down to Rs. 1,79,252 and Rs. 1,77,853.

Written by Sridhar J

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