Archive · 18 Dec 2025
Silver Surges as Supply Crunch Drives ETF Demand
Silver has been doing really well in the market lately.
It's now the fifth most valuable thing in the world, even more valuable than Microsoft.
Experts like Ajay Bagga say silver is doing better than gold because it's used in lots of important things like solar panels, electric cars, and computers.
There's not enough silver to meet the demand, which is making its price go up.
In India, people are buying a lot of silver ETFs, but there's a shortage of the special kind of silver bars needed for these ETFs.
This has made the prices of silver ETFs go up a lot compared to the actual price of silver.
Experts are warning that people might lose money if they buy now because the prices might go down later.
But overall, silver is still a good investment for the long term.
Silver has become the 5th most valuable asset globally, surpassing Microsoft, with a value of $3.6 trillion.
The Gold to Silver ratio has decreased from 105 to 70, indicating silver's strong performance in 2025.
Silver's price surge is driven by industrial demand from solar energy, electric vehicles, semiconductors, and AI data centers.
Global silver supply has lagged behind demand for five consecutive years, leading to a market deficit.
Despite potential risks, the outlook for silver remains positive, with expected mid double-digit returns in 2026.
Silver ETFs in India have seen a surge in trading activity and prices due to a domestic supply squeeze.
Average daily trading volumes for silver ETFs in India have increased significantly, with September 2025 seeing volumes spike to nearly Rs 642 crore a day.
The supply constraint led to a sharp escalation in domestic premiums, with silver ETFs trading 5–10% above their previous day’s net asset value (NAV).
Mirae Asset cautioned investors against fresh purchases at current levels, warning of potential mark-to-market losses if premiums normalize.
- Who
- Ajay Bagga, market veteran, The Silver Institute, Mirae Asset
- What
- Silver's significant price surge and its future outlook, including ETF demand and supply constraints
- When
- 2025 and 2026
- Where
- Global commodity markets, with a focus on industrial and investment demand, particularly in India
- Why
- Due to rising industrial demand, investment flows, supply inelasticity, and macroeconomic factors, as well as a domestic supply squeeze in India
- Silver's Value
- $3.6 trillion
- Gold to Silver Ratio
- 70 (down from 105)
- Silver's Price Rise in 2025
- 110% plus
- Industrial Demand Sources
- Solar energy, electric vehicles, semiconductors, AI data centers
- Global Silver Supply Deficit
- 5 consecutive years
- Silver's Share of Mined Metals
- 80% from lead, zinc, and copper mines
- Expected Silver Returns in 2026
- Mid double-digit
- Average Daily Trading Volumes (2024)
- Rs 77.5 crore
- Average Daily Trading Volumes (2025)
- Rs 211 crore
- September 2025 Trading Volumes
- Rs 642 crore
- Net Inflows into Silver ETFs (Q3 2025)
- Rs 5,700 crore
- Silver ETF Premium
- 5–10% above NAV
- Global Silver Price Increase (October 2025)
- 1.4%
- Domestic Premium Increase (October 2025)
- Multi-fold
Sources
‘Gold on Steroids’ – Ajay Bagga decodes silver’s 2025 boom: 2026 drivers revealed
4 reasons why silver is soaring: Surges 4% to record highs on MCX
Silver ETFs See Frenzied Buying as Supply Crunch Triggers Sharp Premium Spike
Silver Cross Rs 2.06 Lakh In MCX, Rs 2.50 Lakh Projected For 2026
Gold & Silver Prices Slip On MCX Ahead Of US Inflation Data, Dragged By Stronger Dollar
