In India, gold has long been considered the ultimate symbol of wealth, prosperity, and cultural heritage. It has been a staple investment avenue, from weddings to festivals, and remains a favoured choice for wealth preservation across generations. However, for a few days, silver has been making its presence felt in a way that raises a crucial question: Will silver be the new gold?
The question of whether silver could surpass gold as the preferred investment asset or store of value is gaining traction as both metals exhibit unique characteristics and are seeing diverse applications in today’s economy.
Traditionally, gold has been regarded as a safe-haven investment, a store of value, and a hedge against inflation. Silver, on the other hand, has long been undervalued relative to gold, yet its increasing demand in various sectors such as electronics, renewable energy, and industrial use has sparked a renewed interest in the precious metal.
Current Prices of Silver and Gold
As of February 5th, 2025, gold is priced at around Rs. 84,690 per 10 grams, and silver stands at Rs. 963 per 10 grams. Year-to-date, gold has yielded a return of 9.43 percent, while silver has provided a return of 10.3 percent, according to MCX. The question is: Will silver continue to outperform gold this year?
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The Growing Demand for Silver in Electronics
One of the driving factors behind the increased interest in silver is its growing use in industries beyond traditional jewellery. Silver is widely used in the electronics industry due to its excellent electrical conductivity, durability, and malleability.
With the rise of new technologies such as electric vehicles (EVs), smartphones, renewable energy solutions, and wearable devices, the demand for silver has surged. Electronics and photovoltaic applications have become significant consumers of silver, with an increasing number of solar panels, circuit boards, and battery components requiring the metal.
In India, the push toward Make in India and the increased adoption of renewable energy sources have made silver an essential commodity. India is expected to see a growing demand for silver, especially with solar power plants becoming a critical part of the energy mix.
In a Nutshell
The idea of silver becoming the “new gold” in India is intriguing, but it is more likely that silver will complement, rather than replace, gold in the investment and jewellery markets. While silver’s industrial demand is on the rise and its price is becoming more attractive to investors, gold’s cultural value, scarcity, and stability continue to solidify its position as the go-to asset for wealth preservation.
In the coming years, silver may certainly see greater prominence, especially in the context of evolving technological trends, and could become an increasingly important part of Indian investment portfolios. But gold will remain the quintessential precious metal in India’s heart and markets, maintaining its longstanding reputation as the ultimate store of wealth.
Written by Shivani Singh
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