Silver ETFs Up 153% in 2025, Outpace Gold ETFs Over Time

Silver has turned into one of 2025's top wealth builders. A massive jump in physical silver prices fueled silver ETFs to deliver huge returns, easily topping gold ETFs and even stock market gains over short, medium and one-year periods.

Physical Silver's Record Rally Drives ETF Gains

Physical silver prices increased by around 160% this year, climbing from USD 29.24 per ounce at the end of 2024 to roughly USD 76 per ounce by late 2025. Silver prices have surged, leading to significant gains in silver ETFs.

Over the past year, these ETFs gained about 153% in value. Among 31 silver ETFs listed by Value Research, the HDFC Silver ETF had the highest return at 157%. The returns for the group were between the range of 143%-157%, showing a broad increase.

Strong Performance Across Short and Medium Terms

Silver ETFs did not just shine over one year; they crushed it in shorter durations, too. In the past three months, they climbed as high as 66% and over six months, returns hit 100% to 110%, showing how fast the boost kicked in.

Even over three years, top performers reached 48%, with the average at 46%, proving the strength goes beyond the latest hype. All in, silver ETFs outdid equities, gold and equity funds in three-month, six-month, one-year and three-year views.

Pure Silver ETFs vs. Fund of Funds Breakdown

There are 31 silver investment options available. Among these, 17 are straight silver ETFs. These ETFs buy physical silver or assets linked to it & trade like stocks on exchanges, making them suitable for individuals with demat accounts. They closely follow current silver prices.

The other 14 options are FoFs (fund of funds), which invest in those ETFs. These are bought like regular mutual funds and do not require a demat account, providing easier access for everyday investors. Both ETFs and FoFs track the current rate of silver closely, but the pure ETFs track its changes more accurately.

Must Read: Silver Hits ₹2,00,000 in India: Can Prices Climb Higher in 2025?

Silver ETFs Crush Gold ETFs in Every Timeframe

Stacking silver ETFs against gold ETFs paints a clear picture of dominance. Over three months, silver hit 63.38% vs. gold's 22.34%, nearly triple the return, beating by 41 points.

In six months, silver's 110% surpassed gold's 41%. One-year figures show silver at 152.95% to gold's 79.43%, almost double. Even at three years, silver's 44.51% edged gold's 34.74%. Note that silver lacks five- or ten-year data, while gold's longer track record shows more stability.

How Silver Stacks Up Against Equities

Equities often get the nod for big returns, but not this year. Benchmark indices like Sensex returned just 8.24% and Nifty 9.72% over one year. Silver ETFs' 150%+ blow those away, marking 2025 as a standout for silver investments over traditional stocks and equity mutual funds.

Key Drivers Behind Silver's 2025 Increase

Silver prices soared because of a strong supply shortage, with demand exceeding production. The need for silver increased greatly, particularly for solar panels & electric vehicles, where silver is crucial. Expectations for interest rate cuts in the US boosted precious metals and global tensions pushed people to buy silver as a safe investment, similar to gold. The following were the factors that made silver a top investment for investors in 2025.

Key Takeaways for Silver Investors

Silver ETFs have provided strong returns in the short and medium term, outperforming gold and stocks. However, be prepared for more price fluctuations due to changes in the industry and the country's economy.

Gold investments provide stable performance over the long term but usually have lower returns. For 2025, remember that silver does well during market booms. However, it is best to include silver in a balanced investment strategy rather than focusing on it alone.

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