Gold vs Silver on Akshaya Tritiya: Silver Shining Bright in 2025?
Gold or Silver: A Shocking Forecast for Top Investment in Akshaya Tritiya 2025
It's a common sight across the nation to see people investing in gold during Akshaya Tritiya. This festival, not just of religious significance, but also a financial one, falls on April 30th, 2025. The burning question this year is whether gold, after its skyrocketing prices, remains an attractive investment option, or if silver could offer better returns. Let's delve deeper into the future of gold and silver in 2025.
Gold or Silver: The Million-Dollar QuestionSatish Dondapati, a Fund Manager at Kotak Mahindra AMC, believes that the demand for silver has been consistently strong, marking a record price of ₹1,01,999 per kg in 2025. Traditionally viewed as 'poor man's gold', silver's uses in technology-driven industries make it a strong contender for investment [1].
Industrial Demand: The Silver LiningUnlike gold, whose price is mainly based on its monetary role, a significant part of silver is utilized in modern technologies. With global industrial demand expected to exceed 700 million ounces in 2025, the solar energy sector alone accounting for about 15% of the total silver consumption, the tech market looks rosy for silver [1].
Silver's Growing ReputationSilver is a winner in modern technologies such as Artificial Intelligence, Electric Vehicles, and high-performance chips, due to its exceptional electrical conductivity and high demand. This has cemented silver's position as one of the most sought-after metals in 2025 [1].
Supply-Demand Gap: A Silver AdvantageAccording to Dondapati, the supply of silver has consistently fallen short of the demand for the past few years, with a deficit of more than 200 million ounces in 2024. This demand-supply gap is expected to continue in 2025, leading to a potentially rapid rise in prices [1].
Monetary Factors: Another Boost for SilverBesides industrial demand and supply gap, silver benefits from global economic conditions as well. Dondapati explains that factors like inflation, central bank policies, and currency devaluation impact silver, just like gold [1]. With the possibility of the US Federal Reserve cutting interest rates in 2025, silver could receive the same support it did during previous monetary easing [1].
Gold-Silver Ratio: An Indicator of OpportunityWhile the Gold-Silver Ratio (GSR) has dropped from its one-year high level, it still stands at 88.9, significantly higher than its historical average of 60. This suggests that silver is currently under-priced compared to gold, indicating a potential for rapid growth [1].
The Verdict: Silver or Gold?Silver, with its strong industrial demand, supply shortage, and supportive monetary environment, seems to present a compelling investment opportunity in 2025. Although gold will continue to be a reliable long-term investment, a well-diversified portfolio in today's economic climate should consider silver for its growth potential [1].
References:[1] FE Online (2025). Gold vs Silver Outlook on Akshaya Tritiya. Retrieved from [URL][2] CNBC (2025). Silver vs Gold: Expert Analysis and Forecasts [Online]. Retrieved from [URL][3] Barron's (2025). Gold Prices Surge: What Investors Need to Know [Online]. Retrieved from [URL][4] Forbes (2025). Silver Price Forecast 2025: Expert Predictions and Analysis. Retrieved from [URL]
Disclaimer: This article is intended for informational purposes only and is not financial advice. Always consult a certified financial advisor before making investment decisions.
- The question of gold versus silver as an investment option in 2025 is a hot topic, especially considering the consistent demand for silver.
- One factor contributing to silver's appeal is its use in technology-driven industries, which is expected to drive a significant part of its demand in 2025.
- Compared to gold, whose price is mainly based on its monetary role, silver's value is influenced by both industrial demand and global economic conditions.
- The supply of silver has fallen short of demand for several years, creating a deficit that is expected to continue in 2025, potentially leading to a price surge.
- Factors like inflation, central bank policies, and currency devaluation impact silver, similar to gold, providing an additional boost to its value.
- With the possibility of the US Federal Reserve cutting interest rates in 2025, silver might experience the same growth it did during previous monetary easing.
- The Gold-Silver Ratio (GSR) suggests that silver is currently under-priced compared to gold, indicating a potential for rapid growth.
- Given its strong industrial demand, supply shortage, and supportive monetary environment, silver presents a compelling investment opportunity in 2025.
- In the realm of personal finance and investing, it's essential to consider silver for its growth potential, especially in a diversified portfolio strategy, but always consult a certified financial advisor before making investment decisions.
