Silver Delivers Twice the Returns of Gold in 2025: After years of lagging behind gold, silver emerged as the top-performing precious metal in 2025, delivering nearly double the returns of gold, according to Navneet Damani, Senior Group Vice President and Head of Research at MOFSL.
Silver surged 145 per cent in 2025, compared to gold’s 77 per cent return, marking one of the strongest years for commodities in decades. Damani described 2025 as an exceptional year for metals, with gold, silver, copper, and aluminium all witnessing significant value creation.
Silver’s Stunning Rally in 2025
At the start of 2025, silver was trading near Rs 1 lakh per kg, with expectations of reaching Rs 1.40–1.50 lakh by year-end. However, prices surged much faster than anticipated. By mid-year, silver touched Rs 1.50 lakh, prompting MOFSL to revise its target to Rs 2 lakh, and later to Rs 2.45 lakh per kg.
Damani now believes that the Rs 2.45 lakh level—earlier expected in 2026—may be achieved within 2025 itself, underscoring the ferocity of the current rally.
Why Silver Outperformed Gold
Damani explained that silver’s rally is partly a catch-up move against gold, pointing to the gold–silver ratio, which historically averages between 40 and 50. During mid-2025, the ratio spiked to 110–111, indicating severe undervaluation of silver. Since then, it has corrected to around 65–66, closer to historical norms.
“Silver has rallied extremely fast, making it difficult for many investors to digest,” Damani said, adding that supply constraints and strong industrial demand have played a crucial role.
Gold and Silver Outlook for 2026
MOFSL’s preliminary outlook for 2026 suggests:
- Gold target: $4,700–$4,850 (best case)
- Silver target: $77 (best case for 2026)
Damani noted that these targets may need upward revision, as silver could potentially move toward $90 by 2026–27, a level earlier expected only in 2027–28.
Caution for Investors
Despite the bullish outlook, Damani urged investors to remain cautious, warning against investing purely out of fear of missing out (FOMO). “The momentum has been very ferocious,” he said, cautioning that price corrections or consolidation phases are possible after such sharp rallies.
Bottom Line
While silver has decisively outperformed gold in 2025 and the long-term outlook remains positive, experts advise a measured and disciplined investment approach as markets enter 2026 amid heightened volatility.
