Silver Prices 2025:

In the last few years, silver prices have shown an unexpected and historic rise. What once cost around ₹55,000 per kilo in 2023 has now touched nearly ₹2 lakh per kilo in 2025. This steep increase has surprised both jewellers and investors, leaving everyone asking one big question why is silver getting so expensive?

Silver Prices 2025:

The main reason is a mismatch between supply and demand. While the demand for silver has grown rapidly, its production has not kept pace. Silver is no longer just used for jewellery and household items. Today, it is a key component in solar panels, smartphones, electric vehicles, and medical equipment. This industrial demand has made silver a “hot commodity.”

Globally, silver production has slowed down. Around 70% of silver is produced as a by-product while mining other metals such as lead, zinc, copper, and gold. Since no dedicated mining is done purely for silver, its supply remains limited. Starting a new silver mine requires huge investments, government permissions, and environmental clearances — making it a tough task.

Another factor adding to the price rise is reduced recycling. Because investors expect prices to rise further, fewer people are selling their old silver jewellery, coins, or bars. As a result, the metal’s availability in the market is even lower.

In India, which is one of the largest silver-consuming countries, the situation is more intense. Nearly 80% of the silver used here is imported, and international restrictions are making imports difficult. Recently, the United States added silver to its list of critical minerals and started stockpiling it. This could lead to a global shortage, directly affecting Indian markets.

Experts predict that if this trend continues, physical silver might become harder to find in the coming years. With gold prices also touching new highs, it seems both precious metals are entering a long-term “bull run.”

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