Silver prices rose 0.57% to ₹106,493 as global tensions and economic uncertainty increased. The rise came after Israel launched a preemptive strike on Iran, which sparked fears of a major conflict in the Middle East.
Apart from being a safe haven asset in times of crisis, silver is also supported by strong demand from industries and limited supply. It is widely used in solar panels, electronics and green technologies, which account for more than half of global demand.
According to the Silver Institute, silver is likely to face its fifth annual supply deficit in 2025, with a deficit of 117.6 million troy ounces. While this is 21% lower than the previous year, the gap is still wide due to stable industrial demand and increasing investor interest in buying silver.
Industrial use of silver is expected to grow by 3% in 2025, exceeding 700 million ounces for the first time, driven by clean energy and technology needs. Investor demand for silver, particularly in Europe and North America, is also expected to grow by 3%,
