Silver’s Rally Turns Functional: Anil Agarwal Declares A New Era

Silver has stolen the spotlight in 2025, surging past gold in performance and entering what Vedanta Chairman Anil Agarwal calls a long-term structural phase. The rally is not just about precious value but also about functional demand, making silver a unique metal with dual significance.

Key Highlights

• Silver prices have appreciated 125% in dollar terms this year, compared to gold’s 63% rise
• The metal hit a record Rs 2.14 lakh per kg in India, underscoring its extraordinary momentum
• Anil Agarwal emphasized silver’s growing role in technology-led industries such as solar cells and defense systems
• Silver now contributes nearly 40% of Hindustan Zinc’s profits, strengthening Vedanta’s earnings diversification
• Global silver prices crossed $70 per ounce in December, marking a historic milestone for the commodity market
• Agarwal described silver as the only metal with both intrinsic value and functional demand, making its rally sustainable
• He noted that silver has finally stepped out of gold’s shadow, positioning itself as a long-term growth driver

Broader Context

The surge in silver reflects a shift in investor sentiment, where industrial demand is increasingly shaping commodity markets. From renewable energy to advanced defense technologies, silver’s applications are expanding rapidly. This dual nature precious and functional sets silver apart from other metals and explains why Agarwal believes the story is just beginning.

For Vedanta, the rally is more than symbolic. Hindustan Zinc, a key subsidiary, has become a proxy for silver in the Indian stock market, with its profits and share price riding the wave of silver’s momentum. The company’s diversification strategy is now firmly anchored in silver’s industrial relevance, ensuring resilience against commodity cycles.

Conclusion

Silver’s rally in 2025 is not a fleeting trend but a structural shift. With technology-driven demand and record-breaking prices, the metal is poised to redefine its role in both financial markets and industrial ecosystems. Anil Agarwal’s declaration signals confidence that silver’s shine will endure far beyond this year’s surge.

Sources: Livemint, Business Today, Economic Times