Gold and silver prices surge in 2025: Key factors silver may now be the better investment

As gold prices soar, silver emerges as a viable investment despite its price hike.

Published on: Jun 20, 2025, 23:23:59 IST

By HT News Desk

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As gold continues to dominate headlines with its record-breaking rally—soaring from just over $2,000 per ounce in January 2024 to around $3,400 in mid-2025—silver is quietly gaining ground as a serious contender for investors' attention. Currently priced at approximately $44 per ounce, up from around $24 at the start of 2024, silver has seen an impressive 80% increase in just 18 months, as reported by CBS.

Industrial demand for silver, especially in solar panel production, drives its recent price, offering affordability and more. (Representative Image: Unsplash )

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Prices of silver surge in 2025, besides gold

Since January, silver has climbed from $28.92 to $37.12 per ounce—a notable 28% surge in just over six months, according to data from American Hartford Gold. While those numbers might not appear staggering at first glance, the increase reflects strong momentum fueled largely by industrial demand.

Silver plays a critical role in sectors like renewable energy, particularly in the production of solar panels, which has driven much of its recent growth. If these industrial needs continue to expand, experts suggest this could mark the beginning of a longer-term upward trend.

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Key Factors that make silver a better investment

Industrial demand: As mentioned above, the primary driver is the strong and growing demand for silver in industrial applications, particularly in solar panels. This robust industrial usage is expected to sustain or even increase demand, potentially turning the recent price surge into a consistent long-term trend.

Affordability: Despite teh recent price hike, silver continues to be much more affordable. This lower entry price point makes it accessible to a broader range of investors, especially as gold prices have reached historic highs.

Inflation hedge: Like gold, silver serves as a hedge against inflation. With inflation still a concern in 2025, silver offers investors a way to protect their portfolios from the eroding purchasing power of the dollar.

Portfolio Diversification: Silver provides an affordable means to diversify investment portfolios. While gold is traditionally favored for diversification, silver offers similar benefits at a lower cost, making it attractive for those seeking alternatives to stocks, bonds, or real estate.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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