Rising beyond gold’s shadow: Silver as a strategic metal of the future

As highlighted in my previous articles about the growing importance of silver and the realization of silver not just being a precious metal but also of high industrial importance due to its extensive application across industries in March 2024, February 2025, and March 2025, the trend has now firmly taken shape.

On 28th August 2025, silver futures touched a new lifetime high of ₹1,17,825, reinforcing its rising significance in both domestic and global markets.

The chart above clearly shows that Indian silver futures have been moving in close tandem with global silver prices, highlighting the strong interconnection between domestic and international markets.


This means that whenever global silver prices rise on account of policy shifts, central bank actions, or supply-demand imbalances, Indian silver futures also respond in the same direction. Hence, the global developments around silver are particularly important for Indian investors, as they provide a clear roadmap for where silver futures may head next.

Against this backdrop, several important global events have unfolded recently which have the potential to shape silver’s trajectory in the months and years ahead.

Silver added to US critical minerals list

On 26th August 2025, the U.S. government updated its Critical Minerals List, adding six new minerals, including silver. This move underscores a strategic recognition of silver’s growing role beyond jewelry and investment. Today, silver is indispensable in high-tech applications, solar photovoltaics, electronics, medical devices, and renewable energy infrastructure.

The inclusion highlights America’s dependence on imports, primarily from Mexico and Canada, and reflects rising concerns over supply security. Globally, this elevates silver from a commodity to a strategic resource, likely driving greater investment in mining, recycling, and stockpiling. It also sets the stage for intensifying competition among nations for access to silver, creating potential geopolitical leverage for silver-rich countries and contributing to price volatility as demand accelerates.

Saudi Arabia’s strategic bet on silver

Adding to the bullish momentum, the Saudi Central Bank has announced fresh investments in the iShares Silver Trust (SLV) — the world’s largest silver ETF — along with the Global X Silver Miners ETF (SIL). This marks a noteworthy development, underscoring Saudi Arabia’s conviction in silver’s long-term value, both as a precious metal and a strategic industrial resource. Notably, this is only the second such move by a central bank, following the Russian Central Bank’s decision in FY24 to build physical silver reserves.

Central banks usually prefer physical assets like gold, but Saudi Arabia’s move into silver-backed ETFs shows growing global institutional recognition of silver’s dual importance in the financial and industrial ecosystem.

Supply-demand dynamics: A structural deficit

The global silver market is already under strain. Silver demand has exceeded supply for four consecutive years, creating a structural deficit. In 2024, the deficit stood at 148.9 million ounces (Moz), and in 2025, the World Silver Survey projects another 117.6 Moz shortfall.
This consistent gap between supply and demand is a strong tailwind for silver prices. With industrial demand rising—driven by solar power, EV batteries, 5G technologies, and electronics—the supply side is struggling to keep pace, especially as silver is often produced as a by-product of other mining activities.

The road ahead for investors

The convergence of three factors—U.S. policy recognition, Saudi central bank investments, and a persistent global supply deficit—paints a bullish long-term picture for silver. From being seen as a safe-haven asset like gold, silver has now emerged as a strategic industrial metal critical to the green energy transition and modern technologies.

For Indian investors, silver offers a unique dual advantage: it is both a precious metal hedge against inflation and a proxy for industrial growth and energy transformation. As prices breach new highs, volatility will remain, but the long-term trajectory appears strongly upward.
In conclusion, silver is no longer just “poor man’s gold.” It is a strategic asset shaping the future of technology, clean energy, and global geopolitics. Investors would do well to treat silver not merely as a commodity but as a core component of a diversified portfolio aligned with the trends of tomorrow.

(The author, Jimeet Modi, is Founder & CEO, SAMCO Group. Views are own)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)