PATTAYA, Thailand – Silver prices have soared more sharply than gold this year due to constrained global supply and rising demand. Unlike gold, silver is not only a safe-haven asset but also a critical industrial metal used in modern technology, including solar panels, electric vehicles, electronics, and medical equipment.
In 2025, silver prices on the London market have jumped about 70%, outpacing gold’s 55% rise from the start of the year to mid-October. Investors are rushing to buy silver due to limited supply and its dual role as both an industrial commodity and a store of value. The reduced inventory, especially in London, has fallen roughly 33% since mid-2021, intensifying the shortage.
Industrial demand, particularly from India ahead of Diwali, is a major driver. Imports of silver into India have doubled compared to last year as jewelers stock up, willing to pay premiums of 10% or more. Meanwhile, China and India remain the largest silver buyers globally, driven by large populations, industrial use, and demand for coins and investment products.
Global silver production faces constraints due to declining ore quality and limited new mining projects in Mexico, Peru, and China. While stock transfers from New York to London may ease short-term shortages, chronic supply limitations mean prices are likely to remain elevated.
In short, silver’s unique combination of industrial necessity and investment appeal, coupled with tight supply, has pushed its price higher than gold in 2025.
