One of the most telling market shifts is the sharp decline in the Gold-Silver Ratio from 107 to 95, suggesting silver is increasingly favoured over gold by investors seeking value and growth potential.
Silver prices have hit yet another record high of ₹1,04,675 per kg on Thursday breaching the previous peak of ₹1,01,313 logged on March 27.
The white metal opened firm at ₹1,01,298 a kg against the previous close of ₹1,00,980 and surged further to close at ₹1,04,675 on Thursday, according to the Indian Bullion and Jewellers Association data.
The metal has seen an upward trend since April 4 when it was trading at ₹87,620 per kg. The rally was on the back of renewed industrial demand from sectors such as electric vehicles and solar energy amid growing tensions between Russia and Ukraine.
Russia is the world’s seventh-largest silver producer, accounting for 5 per cent of global production. While not a top producer, Russia holds a significant share of global silver reserves and actively mines the metal, often as a by-product of other minerals like copper and polymetallic deposits.
Rajesh Rokde, Chairman, All India Gem and Jewellery Domestic Council, said the increase in silver prices was largely expected, given gold’s extraordinary performance, which set the stage for silver’s growth.
The geopolitical tension surrounding the Russia-Ukraine war will have significant implications for global markets and could lead to massive surge in silver prices, he said.
Silver has emerged as a standout performer in 2025, recently hitting an all-time high of ₹1,04,947 per kilogram and a 12-year international peak near $34.90 per ounce.
Ajay Kumar, Director, Kedia Commodities, said the strong rally in silver prices is underpinned by a combination of weak US economic indicators, rising geopolitical tensions, a softening dollar, and robust industrial demand from sectors like electric vehicles and solar energy.
Silver over gold
One of the most telling market shifts is the sharp decline in the Gold-Silver Ratio from 107 to 95, suggesting silver is increasingly favoured over gold by investors seeking value and growth potential, he said.
While silver is well-positioned to test further highs reaching ₹1,30,000 per kilogram in this year, caution is warranted as price corrections may emerge amid broader economic developments, he added.
Apurva Sheth, Head of Research, SAMCO Securities, said silver is on the verge of a historic move with $35-level seen as a crucial breakout zone and a sustained close above this mark could clear the path towards all-time highs, potentially targeting the psychological $50 zone seen during its last euphoric run in 2011.
Silver tends to outperform during periods of reflation and macro uncertainty. This alignment of technical structure and macro backdrop makes silver one of the most interesting assets to watch.
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Published on June 5, 2025
