In 2016, silver prices hit an all-time high of Rs. 47,400 per kg and the metal prices touched Rs. 77,840 per kg in August 2020.  In 2024 silver prices are about to touch 100,000 a kg mark. Hence Silver prices have jumped by more than 100% in the last 8 years. Experts are predicting prices to reach Rs to even Rs 1.2 lakh in the medium to long term.

Historically, silver often outperformed gold during periods of strong economic expansion when industrial economies boomed, and silver has underperformed gold during periods of economic stress when people are more inclined towards gold.

On a year-to-date basis, silver has gained more than 11% till now while gold rallied nearly 15%. To this date, gold has been a better performer but in future silver will be because silver has more applications than the gold.

Rising industrial economy is boosting silver demand. Silver is used in many industries, including solar panels and electric vehicles. According to experts, about 50 per cent of the silver produced globally is used in industrial sectors.

In future the massive demand of silver will come from Solar panel manufacturing industry as Silver is used in the manufacturing of photovoltaic panels and solar power industry is booming.

Demand of silver in China will increase massively. China has more than doubled its investment in solar Photovoltaic manufacturing between 2022 and 2023. The country is a major player in various industries, including electronics, solar energy, and manufacturing, where silver is widely used. Hence, growth in this sector in this country will continue to contribute to silver demand in the long run.

Silver demand from solar panel manufacturers, especially in China, is projected to increase by nearly 170 per cent by 2030.

Moreover, often referred to as "poor man’s gold," and silver's accessibility and affordability make it a preferred choice for lower-income groups, particularly in the form of ornaments. Silver jewellery demand has also improved, spurred by record-high gold prices.

In India the demand for silver is going to increase due to more factors such as Government focus on renewable energy and electric vehicles which creates a significant boost for silver consumption in these sectors. Government policies promoting solar panel installations which is expected to drive up silver demand in the coming years.

Further Rising disposable incomes in India are leading to increased demand for silver jewellery and utensils which are the areas where a significant segment of silver consumption takes place in the country.

The rising awareness of Investments in metals is the another reason for it’s growth. People are adding silver for portfolio diversification.

How can you hold silver?

You can either purchase Physical Silver such as silver coins or bars from any jeweller or invest through Silver Exchange Traded Funds or ETFs. These ETFs are connected to the price of silver and your invested is actually increasing with the value of silver without holding it in physical.