Silver Soars 82% in 2025: Saudi ETF Buys and US Fuel the Rally

Spread love

Industrial demand from EVs, solar, and electronics — coupled with falling mining output and surprise central bank moves — has sent silver prices skyrocketing in 2025.

By S JHA

Mumbai, October 14, 2025 — Silver’s meteoric rise in 2025 has stunned global investors. The metal has surged nearly 82% year-to-date, defying expectations and outperforming gold, equities, and most commodities.

According to Zerodha’s Varsity explainer, the rally is not just about festive buying or investor sentiment — it’s about tightening fundamentals and new macro triggers shaping the global silver market.

“The Silver Institute’s World Silver Survey 2025 revealed that silver demand will exceed supply for the fifth consecutive year, with industrial consumption continuing to climb,” added the brokerage firm. While recycling has increased, mining output has declined, squeezing overall availability.

Adding to the frenzy, Saudi Arabia’s central bank purchased Silver ETFs in early September — a surprise move that showed growing institutional interest in the metal’s industrial applications, noted the explainer. Meanwhile, the United States added silver to its List of Critical Minerals for the first time, elevating its strategic importance for national and economic security.

Domestically, Indian investors have joined the rush. Festive-season demand has buoyed jewellery and bullion buying, though analysts note that Indian silver prices trade only about 10% above global levels — mostly due to customs duties and GST.

However, not all is glittering for investors. “Silver ETFs are trading at a 5–10% premium to physical prices, driven by strong demand and limited unit supply. As a result, several mutual funds have paused lump-sum inflows into their Silver Fund-of-Fund schemes to prevent excessive volatility and overvaluation,” added Zerodha varsity.

Experts warn that while long-term prospects remain strong, investors should watch for short-term corrections as markets digest record gains and adjust to stretched valuations.