Nidhi Talks: Is Now the Right Time to Invest In Silver?

In a recent video, Nidhi Sinha, Editor at Outlook Money, notes why silver has emerged as one of the best-performing precious metals this year. Prices crossed Rs 2 lakh per kilogram in 2025, which delivered record-breaking returns. October marked a notable high, with silver giving a monthly return of around 30 per cent, the highest in over a decade. But what is driving this rally, and is it the right time to invest?

The video states that the surge in silver prices is largely due to a demand–supply mismatch. Demand has soared from sectors such as clean energy, solar panels, electric vehicles (EVs), AI, and data centres, whereas supply has been declining steadily over the past five years. Electric vehicles require 67 to 79 per cent more silver than conventional cars. By 2031, the automotive sector could account for nearly 60 per cent of all silver demand. Also, the expansion of AI and digital infrastructure is boosting industrial consumption of silver.

Other than industrial demand, silver is also considered a safe haven during market volatility, inflation, and geopolitical uncertainty. The video states that silver and gold should be used as diversification tools, keeping both under 15 per cent of an investment portfolio.

With its mix of industrial growth potential and wealth protection, silver remains an attractive option for long-term investors.