This metal was not considered 'elite' at one time. Its use was limited to giving gifts to children in Bengali households. Silver coins were also used during the Bengali New Year. Later, when Dhanteras became more popular, silver items began to be purchased as auspicious metals. But silver has always been overshadowed by the glamour of gold. However, it couldn't have been predicted that this metal would be a long-distance racehorse, and those who understood have seen their coffers overflow in just 2 decades. If one calculates from 2020 to 2025, silver's returns have been eye-popping. Gold has also given returns, but the way silver prices have increased is quite astonishing.
Rise in silver prices
Calculations show that if someone had invested ₹1000 in silver in the year 2000, that investment would compound to ₹27,000 in 2025. That means prices have increased nearly 27 times in 25 years.
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In 2000, the price of 1 kg of silver was ₹7,900. On December 23, 2025, the price of 1 kg of silver in Kolkata is ₹2,11,250. That means silver has given returns of more than 2,600 percent in the long run.
Why has the demand for silver risen?
Silver was once primarily seen as a metal used in industrial sectors. This metal was used in different fields. But it was not seen as a viable investment in that way. Investment in silver started much later. Recently, massive investments have been made in AI, data centers, EV, and green energy sectors. Silver is also being used in the defence sector. For this reason, demand for silver has increased manifold recently, and prices have risen accordingly. As investment opportunities increased, multiple mutual funds and multiple ETFs on silver have been introduced in the market in the past few years.
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Whenever there has been volatility in the share market, gold has been relied upon to keep assets secure. Calculations show that silver has done the same job.
In 2025, silver has left gold far behind in terms of returns. This year (YTD), Nifty has increased by a little over 10 percent. Gold prices have increased by 72 percent. Silver prices have increased 138 percent. If someone had invested ₹1 lakh in silver in January this year, that price would stand at ₹2,16,596 on December 23 (MCX rate).
