Silver Set to Outshine Gold: Experts Forecast Supply Deficit Boost
A recent report by global investment firm WisdomTree has projected that silver is poised to outperform gold in the market, with a 23% increase expected over the next year, compared to gold’s projected 17% rise. This forecast comes as a result of supply deficits and escalating industrial demand, which are anticipated to drive the value of silver upward.
The report emphasizes the potential for silver to outpace gold in the coming year, fueled by supply deficits and growing industrial demand. Analysts remain optimistic about the prospects for silver, highlighting the role of these factors as strong tailwinds for the metal’s performance. The question of whether the fortunes of silver are set to change in 2025 has been met with a resounding affirmative from experts.
Supply shortages have plagued the silver market for four consecutive years, with 2025 likely to mark the fifth year of deficits. The depletion of above-ground inventory due to these deficits, combined with investor-held inventory that demands higher prices for sales, underscores the challenges facing the silver market. The surge in industrial demand for silver, driven by applications in photovoltaic installations, 5G technology, and automotive electronics, has propelled the metal’s value to new heights.
Technological advancements, particularly in the realm of renewable energy, have spurred the demand for silver, with the mass production of high-efficiency N-type solar cells requiring increased silver content. The expansion of data centers and artificial intelligence applications further contributes to the growing demand for silver in 2025. In the automotive sector, the shift towards electronic components and investments in battery-charging infrastructure are expected to sustain silver consumption.
The international market has witnessed a rise in silver prices due to heightened industrial demand and global uncertainties. While silver was on track to outperform gold until mid-December 2024, a late-year contraction allowed gold to surpass silver, closing the year with a 27% increase compared to silver’s 21% gain. The report highlights the historic undervaluation of silver relative to gold, with the gold-to-silver ratio exceeding 90 in January 2025 before showing signs of decline.
Experts point to technical indicators suggesting that silver may be gearing up for another upward trend, with the potential for sharp corrections in favor of silver. In India, silver prices are influenced by various factors, including global economic conditions, the rupee-dollar exchange rate, and government trade policies. The price of silver per kilogram in India has reached ₹1,03,000, reflecting the metal’s growing value in the market.
With the forecasted supply deficit and rising industrial demand, silver’s trajectory in 2025 appears promising, positioning it as a frontrunner to outshine gold in the coming year. As investors and stakeholders monitor these developments, the silver market is poised for an exciting period of growth and transformation.
