Silver hits fresh multi-decade high as Indian FoFs attract investors

Silver surged to a fresh multi decade high this week, reaching about 51 dollars per ounce in international trade and pushing Indian spot prices to roughly Rs 1.6 lakh per kilogram, as investors and industry buyers drove a sharp rally in the metal. The move has left silver up roughly 60 to 75 percent year to date, depending on the market and benchmark, and has put silver ahead of most other traditional assets in 2025.

Traders and analysts point to a combination of factors behind the rally. Industrial demand from renewable energy and electronics, particularly for solar panels and electric vehicles, has tightened physical supplies, while bouts of safe haven buying amid geopolitical uncertainty and broader macro volatility have added investment demand. The weakening of the rupee has amplified local-currency gains in India, where multi commodity exchanges and spot markets have repeatedly recorded fresh highs this month.

The strength in silver is prompting a pronounced shift among retail and institutional investors toward paper exposures such as silver exchange traded funds and newer dual‑metal fund of funds that combine gold and silver ETFs. Several fund houses in India have launched...