Silver prices around the world are witnessing a strong surge in 2025, with the metal soaring past 38 dollars per ounce in the international spot market. This marks the highest level seen in more than 13 years. The rally in silver has been rapid and impressive, with the metal gaining nearly 25 percent in the first half of the year. It has been closely tracking the performance of gold, which has posted a 26 percent increase in the same period.

This price momentum in silver is being driven by a combination of factors, including global economic uncertainty, persistent geopolitical risks, and growing demand from both investors and industrial sectors. Experts point out that many investors are seeking refuge in precious metals, which are seen as safer alternatives during periods of financial stress and global market volatility. The return of interest in silver is also linked to its use in industries such as electronics, solar energy, and electric vehicles.

Another reason for silver’s sharp rise is the elevated gold to silver ratio that was seen earlier this year, particularly in the months of April and May. This ratio suggested that silver was historically undervalued compared to gold, prompting traders and institutions to increase their silver holdings as they anticipated a catch up rally.

The ripple effect of the global surge has been clearly felt in India, where silver prices reached a historic peak. On Friday, the metal hit 1,11,750 rupees per kilogram on the Multi Commodity Exchange, the highest price ever recorded in the Indian market. September delivery contracts also saw significant movement, climbing 1.61 percent to trade at 1,10,885 rupees, with over nineteen thousand lots traded. Analysts say this jump is largely due to traders building fresh positions in anticipation of continued global momentum.

Silver in India is heavily influenced by international market trends and the rupee’s strength against the dollar. If the Indian currency continues to depreciate, domestic silver prices could rise even further, making silver an increasingly expensive asset. Investors and retail buyers who follow the price movement of precious metals are paying close attention to this rally, especially as the festive season approaches.

Spot traders remain optimistic about silver’s trajectory. They believe that if the current global rally maintains its pace and the rupee weakens further, silver could climb even higher in the Indian market. Additionally, the combination of investment interest and industrial demand may sustain the rally over the medium term.

For Indian investors, silver is once again emerging as a strong alternative asset. It not only offers a hedge against inflation and currency devaluation but also fits into long term portfolios as a store of value. With prices reaching unprecedented levels, those holding silver have already seen significant gains this year.

As global markets continue to shift and uncertainty looms large, the focus on commodities like silver is expected to stay strong. Whether you are a first time investor or someone looking to diversify your portfolio, this could be the right time to learn more about the role of silver in your financial planning.

 

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