When most investors look for investments, they usually think of stocks, mutual funds or gold. But silver is stealing spotlight in 2025 with its 50% YTD returns. Silver is no longer just a shiny metal, it’s an asset class offering both growth and protection during market swings.
When inflation stays high and volatility rises, investors turn to silver or gold to diversify their portfolios. Whether you hold it physically or invest in silver ETF, understanding how silver behaves as an asset class can help you make investment decisions.
An asset class is category of investments that move similarly, like stocks, bonds, real estate or commodities. Silver belongs to the commodity asset class, but its dual nature sets it apart.
Silver acts as a precious metal and an industrial metal used in manufacturing. This means its price is driven not only by investor sentiment but also by actual demand from sectors like energy, electronics and technology. This combination makes silver both cyclical & defensive which is a rare balance in investing.
Inflation erodes purchasing power of money over time. Historically, silver has often shone brighter during such periods like in 1980s(Hunt Brothers’ Silver Saga), 2008 and 2020 COVID crash. Because it’s limited in supply and widely used in industries, silver tends to hold or even increase its value when the currency weakens. That’s why it’s considered a reliable hedge against inflation.
Silver’s price movements are often uncorrelated with stocks and bonds. So when equity markets crash or bond yields drop, silver helps stabilise portfolio returns.
In comparison of gold, silver is much more affordable. Its lower price makes it easier for new or small investors to enter the market without spending a lot. You can start small to buy silver coins, bars or invest in a silver ETF and slowly increase your investment over time.
In 2025, silver has gained attention due to rising industrial demand and ongoing global economic uncertainties. With renewable energy technologies, electric vehicles and electronics continuing to expand, silver’s industrial demand is expected to remain strong. At the same time, inflation concerns keep silver attractive as a store of value.
Also, the gold-silver ratio is around 84:1, meaning you need 84 ounces of silver to buy one ounce of gold, which is much higher than the historical average of 65:1. In early 2024, it even hovered around 85–90, suggesting gold is currently more expensive than usual compared to silver.
There are several ways for investment in silver, each has its own pros and cons.
The oldest and simplest form of silver investment. You can buy coins, bars or jewellery. It gives you tangible ownership but comes with storage, purity and liquidity concerns.
This is the easiest and most popular route today. When you invest in silver ETF, you’re purchasing units that represent physical silver held by a fund. ETFs trade just like stocks, you can buy and sell anytime, track live prices and avoid making or storage costs.
Some Silver ETFs have outperformed several equity benchmarks in 2025, delivering impressive YTD returns like
These invest in silver ETFs or international commodity funds. They’re ideal if you prefer investing through SIPs or mutual fund platforms rather than trading accounts.
If you’re looking for bigger gains, you can invest in silver mining companies or mining-focused ETFs. When silver prices go up, these companies’ profits and their stock prices usually rise even faster, giving you leveraged returns with higher risk..
While investing in silver, most financial planners suggest allocating 5–10% of your portfolio to silver or other commodities. If you’re investing via ETFs, start small and increase gradually depending on your inflation outlook and risk appetite.
Silver is more than just precious metal and it is a unique asset that combines wealth protection with growth. Its volatility can lead to short-term price swings, but investment in silver or choosing to invest in silver ETF helps diversify your portfolio, hedge against inflation and benefit from industrial demand.
Disclaimer:
This blog is for educational purposes only and does not constitute investment advice, an offer to buy/sell securities, or a recommendation. Past performance is not indicative of future results. Investors should consult a SEBI-registered advisor before making decisions. Mention of third-party entities is for illustration only and not an endorsement. Readers are advised to consult their financial advisors or conduct independent research before making any investment decisions. Past performance is not indicative of future results. MNCL is a SEBI-registered intermediary (SEBI Registration No: INZ000008037). For further details, visit www.sebi.gov.in.
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Monarch Networth Capital Limited (‘MNCL’) | CIN No.: L64990GJ1993PLC120014
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Contact information of the designated officials of the listed entity who are responsible for assisting and handling investor grievances : Mr. Nitesh Tanwar
Monarch Networth Capital Limited
Unit No. 803-804A, 8th Floor, X-Change Plaza, Block No. 53, Zone 5, Road-5E, Gift City, Gandhinagar - 382050, Gujarat
Ahmedabad
“Monarch House”, Opp Prahladbhai Patel garden, Near Ishwar Bhuvan, Commerce Six Roads, Navrangpura, Ahmedabad – 380009
Mumbai
Monarch Networth Capital Limited, G Block, Laxmi Tower, B Wing, 4th Floor, Bandra Kurla Complex, Bandra East, Mumbai - 400051.
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