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Mumbai, July 2, 2025 — As gold prices soar past the Nifty 50's returns in H1 2025, investors are now turning their attention to silver. Could it be the next asset class to shine?
Chartered Accountant and market strategist Abhishek Mehta believes silver may indeed have its moment — but with notable risks and timing concerns.
📈 Gold’s Golden Run in 2025
Gold YTD Return (2025): ~18%
Nifty 50 YTD Return (2025): ~11%
Key Drivers:
Rising global inflation
Central bank buying
Weakening rupee
Geopolitical tensions
“Gold’s surge isn’t just safe-haven buying — it’s a hedge against macroeconomic chaos,” says CA Abhishek Mehta.
🥈 Silver's Potential: Underrated or Overhyped?
Silver, traditionally seen as gold's industrial cousin, has lagged behind in recent quarters. But analysts suggest a breakout could be imminent.
Factors favoring silver:
Increased demand in electric vehicles (EVs) and solar panels
Supply constraints due to mining disruptions
Relative undervaluation vs. gold
Gold-to-silver ratio is currently hovering around 78:1, indicating silver might be undervalued historically.
⚠️ Expert Warning: “Silver Is a High-Beta Metal”
“Silver often reacts late, but reacts sharply. It’s highly volatile — traders love it, but long-term investors must time entries carefully,” warns Mehta.
According to him:
Short-term corrections are likely before any strong rally
Retail investors should avoid chasing sudden spikes
Entry should be gradual via SIPs or ETFs
💡 Investment Strategy for Silver (2025 Outlook)
CA Abhishek Mehta’s Suggested Silver Play:
Use Silver ETFs or digital silver platforms (avoid physical unless for long term)
Allocate not more than 5-10% of portfolio
Watch for global industrial demand and Fed policy cues
Time entry in consolidation zones, not rally peaks
“Don’t treat silver like gold. It behaves more like a speculative commodity than a store of value,” he adds.
📊 Market Sentiment: Bullish but Cautious
While domestic silver prices have risen ~9% in 2025, they are still below their all-time highs. If global cues remain supportive, silver could outperform Nifty in H2 2025, but risk-adjusted returns must be calculated carefully.
✅ Conclusion
With gold already outperforming India's key equity benchmark, silver may be gearing up for its run — especially as industrial demand spikes and global markets remain volatile. But as CA Abhishek Mehta cautions, silver is not for the faint-hearted. Strategic, staggered investments are key.
FAQs
Q1: Why is gold outperforming Nifty in 2025?
A: Due to rising inflation, currency fluctuations, and global uncertainty driving safe-haven demand.
Q2: Is silver a good investment right now?
A: It has potential but comes with high volatility. Ideal for small, staggered allocations.
Q3: What's the safest way to invest in silver?
A: Through silver ETFs, mutual funds, or digital silver platforms regulated by SEBI.
Q4: What is the gold-silver ratio and why does it matter?
A: It measures the number of silver ounces needed to buy one ounce of gold. A high ratio often indicates silver is undervalued.
published on 2nd july
Publisher : SMITA
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