Silver Breaks the $65 Barrier: What the Record Rally Means for Investors

The global precious metals market is undergoing a shift few anticipated. Silver prices have surged past the psychologically crucial $65 per ounce mark for the first time in history, forcing investors to reassess portfolios long dominated by gold.

In India, the rally has been equally striking. Silver has crossed the ₹2 lakh per kilogram threshold, a level that signals more than a short-term spike. According to the India Bullion and Jewellers Association, silver prices jumped by nearly ₹9,000 to ₹2,00,750 per kg on December 17, reflecting the strength of the global uptrend.

The move also shattered silver’s 45-year-old record of $49.95, set in 1980. For many conservative investors, the surge raises an uncomfortable question: has silver been overlooked for too long while attention stayed firmly on gold?

Why Silver’s Rally Is Different This Time

This is not a conventional commodity rally driven purely by speculation. While expectations of US Federal Reserve rate cuts have supported precious metals broadly, silver’s momentum is being powered by structural demand.

Industrial consumption reached a record 680.5 million ounces in 2024, fuelled largely by the global shift towards clean energy. Demand from solar panel manufacturing alone has jumped over 20%, while electric vehicles and power-grid upgrades are absorbing silver at a pace that mining supply is struggling to match.

For the fourth straight year, global demand has exceeded supply, resulting in a deficit of 148.9 million ounces. Meanwhile, worldwide silver mine production slipped 0.8% to 823.5 million ounces in 2024, according to industry estimates. The imbalance is clear, and widening.

Gold Holds Firm, but Silver Takes the Lead

Gold prices remain strong, trading near $4,349 per ounce globally and around ₹1,34,000 per 10 grams for 24-carat gold in major Indian cities. Gold’s 27% gain in 2024 is impressive by any standard.

Yet silver has outpaced it, rising nearly 35%, and drawing renewed attention as a potential outperformer. Some analysts believe silver is still undervalued relative to gold, with mining executives like Keith Neumeyer suggesting prices could eventually approach $100 per ounce.

What Investors Should Watch Now

Silver’s rally has altered the investment landscape. Physical silver is increasingly being seen as a credible alternative to gold for portfolio diversification and wealth preservation. Central banks continue to accumulate gold—Kazakhstan added 18.21 tonnes and Brazil 15.49 tonnes in Q3 2025—supporting the broader precious metals complex.

However, silver’s volatility remains a risk. Sharp 5–10% corrections are not uncommon, and technical indicators suggest the metal may be overbought in the short term. Analysts caution that profit-taking could trigger temporary pullbacks.

The key question is not whether silver can move higher, but whether investors can endure the volatility along the way. The structural case for silver remains intact, and it may be too early to call an end to what could be the beginning of a more turbulent, but enduring, phase of its historic rally.

(yMedia is the content partner for this story)