Silver, often called the “Devil’s metal” for its volatility, has seen a historic surge in 2025, reaching $54.47 per troy ounce in mid-October — a 71% increase year-on-year. Prices have slightly corrected but are rising again due to ongoing supply shortages and strong demand.

Key Drivers

• Industrial demand: Electrification, AI, and solar photovoltaics are boosting industrial use.
• India’s demand: The world’s largest silver consumer (approx. 4,000 metric tons/year) sees seasonal spikes post-monsoon and during Diwali, driving investment in jewelry and utensils.
• Global supply crunch: London vaults are running low; available silver dropped from 31,023 metric tons in June 2022 to 22,126 metric tons by March 2025. Borrowing costs for silver surged as high as 200% annualized during shortages.

Market Dynamics

• Silver’s smaller market size compared to gold makes it more prone to short squeezes.
• Price rallies are supported by industrial, retail, and festival demand rather than speculation alone.
• India’s silver price hit 170,415 INR/kg in October, an 85% increase year-to-date, driven by imports from the UAE, China, and the UK.

Outlook

Experts believe silver could maintain high prices or continue to rise, supported by constrained supply and strong demand globally, especially from industrial sectors and Indian consumers.