Silver has been one of the biggest market surprises of 2025, and it is often called the “Devil’s Metal” because of how unpredictable it can be. It has shocked investors by jumping almost 100% this year and hitting new all-time highs. It’s risen much faster than gold, even though gold itself climbed above $4,000 an ounce, and has outperformed nearly every other major commodity.
In this article, let’s take an analyst’s views on silver and explore the possibility of it reaching Rs. 190 per gram in the near future, considering the current market trends and investor sentiments.
The recent huge surge in silver is being driven by a rare mix of strong industrial demand, tight supply, and renewed interest from investors. Talk of possible tariffs, after silver was added to the U.S. Geological Survey’s list of critical minerals, has added even more fuel to the momentum. Many analysts believe this silver rally is different from previous ones because it’s driven by actual market demand, not just speculation.
Here are some of the key factors driving the silver rally
Robust Industrial Demand
The demand for silver is growing rapidly because industries need it more than ever. It plays a crucial role in technologies like solar panels, electric vehicles, and AI infrastructure due to its excellent ability to conduct electricity.
The solar industry alone has greatly increased its silver usage, as manufacturers rely on it to make panels more efficient. At the same time, new technologies and innovations continue to boost silver consumption, making it valuable not just as a safe investment but also as a critical material for modern industry.
Limited Supply Boosting Silver Prices
A tight supply has added more momentum to silver’s recent price surge, and the key storage hubs like London’s vaults saw inventories drop by almost a third between June 2022 and March 2025, creating a noticeable shortage. At one point in October, the cost to borrow silver overnight skyrocketed to an annualised 200%, showing just how scarce it had become. This marks the fifth year in a row of supply deficits, making silver different from many other metals.
The Experts like Rhona O’Connell from StoneX pointed out that physical silver availability was extremely tight, with London vaults having almost no metal left. India also played a big role, as silver prices there jumped by up to 85% during the festive season, with farmers and households buying heavily. This extra demand intensified the global supply squeeze, putting even more pressure on prices.
What Makes This Silver Rally Different?
Silver’s unique role as both an industrial metal and a precious asset is attracting a wide range of investors. Unlike past price spikes caused by market manipulation or financial crises, the current rally is driven by long-term, structural factors. The Key drivers include the global shift toward electrification, growth in renewable energy, and ongoing supply shortages.
An expert explains that this is not a repeat of the 1980 speculative cycle, and Today, silver is no longer seen as the “poor man’s gold.” It has become a critical industrial metal and is now part of a full-scale, structurally driven global bull market.
What Brokerages Have To Say?
UBS remains bullish about silver, expecting prices to rise further as both investment and industrial demand stay strong. Analysts predict that silver could reach $60 per ounce by 2026.
Since 1 ounce is approximately 28.35 grams, this translates to a per-gram price of around $2.12 (60/28.35). At the current exchange rate of Rs. 90 per USD, this comes to approximately Rs. 190 per gram.
Currently, silver is trading at around Rs. 160 per gram in today’s trade, and if the target of $60 per ounce is achieved, the corresponding price per gram would be approximately Rs. 190, with an upside of almost 19 percent.
It is supported by ongoing supply shortages, growing demand from solar and electric vehicles, and improving economic conditions, and hopes of a Federal Reserve rate cut in December have also boosted investor interest.
Analysts believe silver still has room to grow with clean energy transitions accelerating, technological applications expanding, and inventories still tight, the metal’s extraordinary rally may only be entering its next phase.
Written by Sridhar J
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