New Delhi: In a historic development in global commodity markets, silver has overtaken crude oil in value for the first time in more than four decades. Such a situation was last witnessed around 1980. The shift highlights a sharp contrast between the strong rally in silver prices and the steep decline in crude oil.
Silver prices have surged by nearly 115% this year, putting the metal on track for its best annual performance since 1979. In the Indian market, silver recently crossed the milestone of โน2,00,000 per kilogram, while in the international market it climbed close to โน5,395 per ounce (approximately $65 per ounce, converted at โน83 per dollar).
On the other hand, crude oil prices have weakened significantly. WTI crude is currently trading around โน4,641 per barrel (about $55.93), while Brent crude is near โน4,956 per barrel (around $59.71). This represents a decline of nearly 44% this year, making 2025 the worst year for crude oil since the 2020 pandemic period.
Market data highlights how dramatically the trend has reversed. In mid-2022, WTI crude oil was priced at nearly 5.5 times higher than silver. Since then, silver prices have jumped by around 206%, while crude oil prices have fallen sharply. As a result, silver has decisively moved ahead of crude oilโan event not seen since 1980.
Silverโs rising importance is also reflected in its overall valuation. The metal has now surpassed Microsoft in valuation terms and has become the fifth most valuable asset globally, signaling its growing role in both industrial use and investment portfolios.
Strong Industrial Demand Fuels Silver Rally
Experts attribute the surge in silver prices mainly to robust industrial demand, particularly from sectors such as renewable energy, solar power, electric vehicles, electronics, and advanced manufacturing. Silverโs extensive use in solar panels and high-tech applications has strengthened its long-term demand outlook.
On the domestic futures market, some profit booking was observed. On the MCX, silver for March 5 delivery was trading at โน1,97,478 per kg at around 6:00 pm, down by โน423 (0.21%). In the previous session, the contract had closed at โน1,97,901 per kg. During the day, prices touched a low of โน1,94,260 and a high of โน1,97,708 per kg.
Despite short-term volatility, market experts remain optimistic about silver due to sustained industrial demand and changing global investment trends. Meanwhile, crude oil continues to face pressure from oversupply concerns, slowing global growth, and the gradual shift towards alternative energy sources.
The contrasting performance of silver and crude oil marks a defining moment in global commodity markets, reflecting how economic transitions and technological demand are reshaping traditional price hierarchies.
