The price of silver in India rose to ₹223 per gram and ₹2,23,000 per kilogram. The rise of silver price in recent times has surprised market watchers.
Often living in the shadow of gold, silver has quietly built a strong reputation as a long-term hedge and wealth-preservation asset. Over decades marked by inflation, market volatility and geopolitical shocks, the white metal has shown remarkable resilience. Its long-term performance highlights why silver continues to attract investors looking to diversify beyond equities and bonds.
Silver’s wealth-creation story is compelling. An investment of ₹1,000 in silver in 2000 would be worth about ₹26,455 today, assuming the investor stayed invested for 25 years. That translates into a 26-fold rise, underlining the power of patience and long-term investing. In price terms, silver has climbed from around ₹7,900 per kg in 2000 to nearly ₹2.16 lakh per kg now, delivering returns of over 2,600 percent.
At the start of the century, silver was largely seen as a cyclical industrial metal, not a serious long-term investment. Over time, that perception has changed. Like gold, silver has acted as a hedge against inflation and financial stress. Historical trends show that silver helped stabilise portfolios during periods when domestic equity markets delivered negative returns, including the dot-com crash, the global financial crisis, pandemic-driven volatility and recent geopolitical disruptions.
Silver’s relevance has grown further due to its expanding industrial role. According to a recent Yes Bank report, silver demand is supported by structural themes such as the AI boom, data centre expansion, clean energy transition, electric vehicles and defence spending. At the same time, supply pressures have intensified. A supply squeeze that began in October has tightened global markets, while silver’s designation as a critical mineral by the US government has added strategic importance. Chinese inventories have also dropped to decade lows, supporting prices.
In 2025, silver prices surged to record highs. Spot silver crossed $70 per ounce for the first time, while MCX silver touched a new peak of ₹2,16,596 per kg. The rally was driven by a weaker dollar, rising geopolitical tensions and expectations of US interest rate cuts. Silver has also outperformed gold this year, rising 140 percent so far, compared with a 76 percent gain in gold.
While silver remains more volatile than gold, its long-term track record shows that investors who stayed focused on the bigger picture have been rewarded. With global uncertainties persisting, silver continues to strengthen its role as a key long-term portfolio diversifier.
(By arrangement with livemint.com)