Silver’s historic 175 pc surge: White metal outshines gold as 2025’s best asset

Silver prices in India delivered an unprecedented 175 per cent return in 2025, far outstripping gold's performance and briefly eclipsing tech giant NVIDIA to become the world's second most valuable asset.

The white metal reached a historic peak of $84 per ounce on Monday morning before retreating sharply as traders booked profits. Despite the pullback, silver's extraordinary year-long rally has established it as 2025's best-performing asset class, surpassing gold's 80 per cent gain and leaving equity markets far behind.

Supply Crunch Fuels Historic Rally

The surge stems from a structural supply-demand imbalance that has left the global silver market in deficit for seven consecutive years. Industrial demand, particularly from solar panel manufacturing, electric vehicles, and electronics production, has consumed roughly half of the annual silver supply while warehouse inventories in London and New York have fallen to multi-decade lows.

China's announcement of export restrictions starting January 1, 2026, has amplified supply concerns. The new licensing requirements, which will remain in place through 2027, effectively limit exports to large state-approved firms producing at least 80 tonnes annually. According to The Silver Academy, China contributes 60 to 70 per cent of silver available in global markets, and the restrictions could expand the annual supply deficit beyond 5,000 tonnes.