In 2025, silver has delivered remarkable returns to investors, with prices surging by 40% so far. In the past month alone, silver has climbed 10%. This rally has benefited mining companies like Hindustan Zinc and Vedanta, as well as jewelry exporters. Investors are also showing enthusiasm for Silver ETFs, and the Federal Reserve's policies are supporting silver demand.
Silver Returns: In 2025, silver has outperformed gold in terms of investor returns. Silver prices have risen by up to 40% to date, with a 10% increase in the last month alone. This surge has led to a jump in the shares of mining companies such as Hindustan Zinc and Vedanta. Jewelry exporting companies have also seen benefits. Meanwhile, investor interest in Silver ETFs is steadily growing, with Nippon India's AUM crossing the ₹10,000 crore mark. The Federal Reserve's potential interest rate cuts have also boosted demand for silver.
Difference in Returns Between Gold and Silver
At the beginning of 2025, gold prices had crossed $3,500 per ounce, but they haven't seen significant jumps since then. In contrast, silver has shown consistent strength, providing attractive returns to investors. For the first time since 2011, silver prices have surpassed $40 per ounce. Experts believe that silver has offered investors greater benefits this year compared to gold.
Hindustan Zinc and Vedanta Benefit from the Rally
The surge in silver prices has also impacted the stocks of Indian mining companies, particularly Hindustan Zinc and Vedanta, which saw their shares rise. Hindustan Zinc's shares closed up by 3.9% and 1% on September 1st and 2nd, respectively. Vedanta's shares also registered a good recovery.
Hindustan Zinc is the world's third-largest silver producer. In FY25, it produced approximately 687 metric tons of silver and plans to increase this to 1,500 metric tons by 2030. The company believes that silver demand and prices will remain b in the coming times.
Not only mining companies, but jewelry exporter companies like Goldiam International have also profited from silver prices. A weaker rupee and increasing export demand are contributing to good profits for these companies.
Boom in Silver ETF Investments
There has been a tremendous trend in Silver ETF investments in 2025. Nippon India's Silver ETF has now seen its Assets Under Management (AUM) cross the ₹10,000 crore mark. Data indicates that Indian investors are no longer limited to Gold ETFs but are also investing in silver for the long term.
In August 2025, Silver ETF AUM recorded growth for the seventh consecutive month, marking the longest growth period since 2020. Experts suggest that increasing investor interest and b silver prices have made this sector more attractive.
Impact of Federal Reserve Policies
A major reason for the rise in silver prices is the expectation of interest rate cuts by the US Federal Reserve. When interest rates decrease, demand for the bullion market, i.e., gold and silver, increases. This makes returns more attractive for investors. Consequently, investors worldwide have started viewing silver as a safe investment option.
Experts believe that silver's returns may remain attractive for investors in the coming months as well. The impact of rising demand and global economic policies is consistently visible on silver prices.
