WisdomTree, a global investment firm, predicts that silver prices will surpass gold prices due to supply deficits and increasing industrial demand. The firm expects silver to increase by 23% in the next year, outpacing gold’s projected 17% growth.
The report highlights a supply shortage in the silver market for the past four years, with 2025 likely to mark the fifth consecutive year of deficits. Industrial demand for silver is on the rise, driven by its increasing use in applications such as solar panels, 5G technology, and automotive electronics. The report also mentions the record-high installations of photovoltaic systems in 2025, which will further boost silver demand.
Technological advancements, such as the production of higher-efficiency N-type solar cells, are increasing the silver content required. Additionally, the expansion of data centers and artificial intelligence applications is expected to drive up silver demand further in 2025.
Silver prices have already seen an increase due to industrial demand and global uncertainties. Although silver was on track to outperform gold until mid-December 2024, a late-year contraction allowed gold to finish with a 27% gain compared to silver’s 21% increase.
The report also notes that historically, silver has been undervalued relative to gold, with the gold-to-silver ratio surpassing 90 in January 2025. This ratio typically corrects in favor of silver after reaching certain levels, indicating a potential upward trend for silver prices.
In India, silver prices are influenced by global economic conditions, exchange rates, and government policies. The price of silver per kilogram in India has reached ₹1,03,000.
Overall, the report suggests that silver is poised for a rally in 2025, driven by supply deficits and increasing industrial demand.
