Why Local Investors Are Suddenly Buying More Silver Than Gold 2025

REAL ESTATE2 weeks ago

In recent months, local investors have begun shifting their focus toward silver as a promising long-term asset. As global economic uncertainty grows and traditional investment avenues appear increasingly volatile, silver is emerging as a steady and undervalued alternative. Experts believe this trend is not just a short-term reaction but a strategic move by investors who are planning ahead for wealth preservation and portfolio diversification.

Silver’s Steady Rise: What’s Driving the Interest?

Silver prices have been on a gradual upward trend, boosted by multiple economic and industrial factors. In 2024 alone, silver gained more than 15%, outperforming many other traditional investment vehicles. According to financial analysts, this rise is largely attributed to three major factors:

Industrial Demand: Silver Local plays a crucial role in solar panels, electric vehicles, and electronics. As countries push for cleaner energy and increased manufacturing, silver demand is expected to grow steadily.
Economic Uncertainty: With inflation concerns, unstable equity markets, and geopolitical tensions, silver is seen as a safe-haven asset, much like gold.
Affordability: Compared to gold, silver is far more affordable for small and mid-sized investors, making it an attractive option for those looking to build long-term holdings without large upfront capital.

Local Investors Shift from Gold to Silver

While gold has traditionally been the go-to precious metal in India and many other regions, local investors are now increasingly eyeing silver. Financial advisors have noticed a visible trend among retail Local clients, particularly young professionals and new investors, who are purchasing silver coins, bars, and ETFs (Exchange-Traded Funds).

“There’s a noticeable shift in preference,” says Rohit Malhotra, a senior investment strategist based in Delhi. “Many of our clients are interested in silver not just for its historical value but because they see more growth potential compared to gold. It’s also easier to enter the market with silver.”

Long-Term Gains Over Short-Term Profit

Unlike Local speculative trading in stocks or crypto, the move toward silver appears to be a more calculated, long-term investment strategy. Investors are buying physical silver and silver-backed securities with a 5-to-10-year horizon in mind.

A report by the Indian Bullion and Jewellers Association (IBJA) notes that silver demand in India jumped by nearly 25% in the past year, particularly from retail and HNI (High Net-Worth Individual) segments. This demand has also been reflected in the uptick in silver imports and rising sales of silver jewellery and utensils.

Financial planners suggest that silver is ideal for long-term goals such as children’s education, retirement, or wealth creation, especially when bought in small quantities regularly.

ETFs and Digital Silver on the Rise

One of the biggest enablers of this silver boom has been the rise of digital investment platforms. Apps and online brokerages now allow investors to purchase “digital silver” in denominations as small as ₹100. This has opened doors for young and first-time investors who prefer digital transactions over buying and storing physical metal.

Silver-focused ETFs have also gained traction. These funds track the price of silver and allow easy entry and exit, providing exposure to the metal without the hassle of physical storage.

According to data from the Securities and Exchange Board of India (SEBI), silver ETFs have witnessed over 30% growth in investor inflows in the last fiscal year.

While silver is gaining attention, experts caution that like any commodity, its prices can be influenced by global factors including currency fluctuations, mining output, and macroeconomic indicators. That said, the current trend indicates that silver is no longer viewed as just a secondary asset to gold.

“Investors should consider silver as part of a diversified portfolio,” says Meera Iyer, a Pune-based certified financial planner. “It can act as a hedge against inflation and market volatility. But, like all investments, it’s important to do thorough research and understand your financial goals.”

She recommends allocating 5-10% of one’s investment portfolio to silver-related assets, depending on risk tolerance and long-term planning.

Will Silver Continue to Shine?

The silver outlook remains strong. Analysts from major global investment firms, including JPMorgan and Goldman Sachs, have forecasted a bullish trend for silver, citing rising industrial demand and limited global supply. Some even suggest that silver could outperform gold in the next decade due to its dual role as a precious and industrial metal.

In India, this sentiment is echoed by local traders and bullion experts who expect festive and wedding seasons to further drive silver sales in the coming months. Additionally, rural demand — often a key factor in silver consumption is also projected to rise due to improving agricultural income and economic stability in tier-2 and tier-3 cities.

Final Thoughts

As the global economy continues to experience rapid change, more local investors are turning to silver not just as a temporary hedge, but as a long-term financial strategy. The metal’s affordability, growing industrial applications, and increasing digital access are making it more attractive than ever.

Whether you’re a seasoned investor or someone just starting your financial journey, silver is worth watching. With the right approach, it could offer strong and stable returns in the years to come.