Silver prices in India have risen dramatically over the last year. As of October 9, 2025, the price of silver futures is Rs. 1,49,087 per kg, or Rs. 1490.87 per 10 grams. This shows an increase of 67.5 percent in one year from Rs.88,872 as on 9 October, 2024.
The returns on the equity markets, in contrast, have given flat returns. In one year, the Sensex has risen by 0.70 percent, while the Nifty 50 index has risen by 0.65 percent. This difference shows that silver gave better returns than stocks during this time.
Why are silver prices rising?
- Safe-haven demand – Investors are buying silver to protect against economic uncertainty, geopolitical tensions, and possible interest rate cuts.
- Strong industrial use – Silver is needed for solar panels, semiconductors, and electric vehicles, driving high demand.
- Supply shortage – Annual silver production is lower than consumption, creating a deficit that pushes prices up.
- ETF and investor inflows – More money is flowing into silver through ETFs, boosting its price.
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Sectors to be impacted by the rise of silver prices
1. Electronics & Electricals Sector
Silver is widely used in this sector for conductors, PCBs, switches, and electrical contacts due to its excellent conductivity. Rising silver prices can increase production costs and impact profit margins for companies in this segment.
Major stocks such as ABB India, RMC Switchgear, KEI Industries, and others are likely to be impacted, as these companies use silver in manufacturing key electrical components. Consequently, rising silver prices could lead to higher input costs, affecting margins.
2. Solar & Renewable Energy
Silver is widely used in this sector for solar photovoltaic (PV) panels, where it plays a crucial role in electrical conductivity and energy conversion efficiency. Rising silver prices can increase production costs and impact profit margins for companies in this segment.
Stocks in the Solar & Renewable Energy sector that could be impacted by rising silver prices include Tata Power Solar, Refex Renewables & Infrastructure, Vikram Solar, and Adani Green Energy, as these companies use silver extensively in solar photovoltaic (PV) panels. Higher silver prices can increase production costs, potentially affecting their profit margins.
3. Industrial & Chemical Manufacturing
Silver is widely used in this sector for mirrors, coatings, and catalysts due to its reflective and catalytic properties. Rising silver prices can increase production costs and affect profit margins for companies operating in this segment.
Stocks in the Industrial & Chemical Manufacturing sector that could be affected by rising silver prices include Aarti Industries, Solar Industries India, Tata Chemicals, and Finolex Cables, as these companies use silver in products such as mirrors, coatings, and catalysts. Higher silver prices can increase their input costs, potentially impacting profit margins.
Written by Akshay Sanghavi
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