Silver has long attracted investors looking for an alternative to stocks and bonds, and it's easy to see why. It's more affordable than gold, has a wide range of industrial uses that support ongoing demand, and can serve as a hedge against inflation and economic uncertainty. The downside is that it can be significantly more volatile than other assets and doesn't generate income the way stocks or bonds do. If you're considering adding silver to your portfolio for the first time, here's what you need to kno ...

Core Viewpoint - Silver prices experienced a significant intraday reversal, dropping from $82.5 (~Rs 2,54,000) to $75 (~Rs 2,38,000), primarily due to profit-booking and a decrease in safe-haven demand following an extended rally [1][2]. Price Movement and Market Sentiment - Optimism regarding potential progress in Russia–Ukraine peace talks has reduced geopolitical risk premiums, leading to short-term liquidation in silver [2]. - Speculative traders have reduced long positions due to elevated price levels and silver's substantial 180% year-to-date gains [2]. - A slight recovery in the US dollar and bond yields has negatively impacted market sentiment, although the overall trend for silver remains structurally bullish [2]. Performance Comparison - Despite the recent dip, silver has outperformed most asset classes in 2025, achieving over 160% year-on-year growth, significantly surpassing gold's 70% increase [3]. Factors Driving Silver Prices - The sharp increase in silver prices has been attributed to robust industrial demand, ongoing supply constraints, its recent classification as a U.S. critical mineral, and increased investor interest driven by momentum buying [6]. Investment Channels - Investors are exploring various ways to participate in the silver market, including futures, ETFs, physical bars, and mining stocks [7]. - The largest marketplace for physical silver is London, where major banks like JPMorgan and HSBC store significant bullion reserves [8]. - Silver futures are actively traded on exchanges such as COMEX, MCX, and the Shanghai Futures Exchange, allowing speculation on future prices without physical delivery [9]. - ETFs, such as the iShares Silver Trust, have gained popularity among small investors, with the fund currently holding around 529 million ounces of silver valued at approximately $39 billion [10]. - Physical silver in the form of bars and coins remains a preferred choice for many retail investors, although it involves considerations of storage, purity, and liquidity [11]. - Shares of listed silver mining companies provide another investment route, influenced by both silver price movements and company-specific factors [12].