Indian Investors Flock To Silver As Returns Outpace Gold In 2025

Indian Investors Shift Focus to Silver as Prices Hit Record Highs

New Delhi, July 14:
Indian investors are increasingly turning their attention to silver, a metal traditionally overshadowed by gold in the country. Silver prices in India recently surged to a record ₹114,875 per kilogram ($1,336), nearing a 14-year global high. This spike is attracting both seasoned and new investors seeking better returns.

Silver has delivered impressive returns in recent months. Over the past three months, prices have jumped 21%, far surpassing the 5% rise in gold. This is a reversal from last year when gold outperformed silver.

The growing interest is being driven by both investment demand and industrial use, particularly in sectors like solar energy and electric vehicles, according to Chirag Thakkar, CEO of Gujarat-based Amrapali Group, a top silver importer. He noted that despite high prices, investors are continuing to buy silver, instead of selling off their holdings — a shift from typical market behavior.

One investor, Umesh Agarwal, who usually buys gold coins, recently purchased his first silver bar. “Gold gave me good returns over the years. Now, I believe silver might do the same,” he said.

Silver ETFs (Exchange-Traded Funds) have seen a record inflow of ₹20.04 billion in June 2025, up from ₹8.53 billion in May. In the April–June quarter, silver ETFs received ₹39.25 billion, compared to ₹23.67 billion for gold ETFs, showing rising investor preference for silver.

Vikram Dhawan, head of commodities at Nippon India Mutual Fund, said silver ETFs are gaining popularity as they offer a hassle-free way to invest in a metal that is otherwise bulky and expensive to store.

Market uncertainty, especially after President Donald Trump’s recent tariff announcements, has also prompted investors to diversify their portfolios, a Mumbai-based bullion dealer added. Once seen as a poor man’s gold, silver is now drawing attention from urban investors as well.

According to the Silver Institute, India’s retail investment demand for silver grew 7% year-on-year in the first half of 2025. Silver imports also soared 431% in May, reaching 544.1 tons, while gold imports dropped 25% to 30.5 tons, government trade data showed.