N※N

Silver shines bright: Should investors beat gold and go for the white metal? Alok Jain explains - BusinessToday

  //business-finance.news-articles.net/content/202 .. hite-metal-alok-jain-explains-businesstoday.html
  Published in Business and Finance on Tuesday, September 23rd 2025 at 23:51 GMT by Business Today
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

Silver Shines Bright: Should Investors Beat Gold and Go for the White Metal?
Alok Jain Explains

Business Today, 24 September 2025 –
In a market that’s still grappling with inflationary headwinds, a growing number of investors are looking beyond the traditional safe‑haven of gold to a darker, less celebrated rival: silver. In a feature that blends hard data with market sentiment, financial analyst Alok Jain offers a comprehensive look at why silver might now be the white‑metal of choice for portfolio diversification.

1. The Silver‑Gold Conundrum

Gold has long been the go‑to hedge against currency devaluation and geopolitical uncertainty. Silver, by contrast, has been perceived largely as a “commodity for industry” – a key input for everything from photovoltaic panels to electrical wiring. Jain challenges that perception by highlighting recent price dynamics: as of late September, silver had surged more than 40 % in the past year, outpacing gold’s 15 % rise. He attributes the outperformance to a combination of supply constraints and a spike in industrial demand.

“Silver is not a substitute for gold, but it is a complementary asset that can give you exposure to both a hedge and a growth‑driven commodity,” Jain notes.

The article includes a chart (linked in the original piece to a data‑visualization page) that tracks the silver‑to‑gold price ratio over the last five years. The ratio has been climbing steadily, indicating that silver’s price gains have been more rapid relative to gold.

2. What Drives Silver’s Recent Rally?

Industrial Demand
Jain explains that the silver boom is largely tied to the clean‑tech sector. Lithium‑ion batteries, electric‑vehicle (EV) charging stations, and solar panels all use silver in their circuitry and connectors. A 2024 United Nations report—linked within the article—showed that global silver consumption for photovoltaic panels alone grew by 18 % from 2023, setting the stage for sustained demand.

Supply Bottlenecks
Silver is produced as a by‑product of mining copper, lead, and zinc. Over the last decade, major silver‑producing mines in Mexico, Peru, and China have faced operational challenges. The article links to a Reuters piece that highlighted a 10 % decline in global silver production in 2025, a figure that Jain says will keep price pressure on.

Inflation Hedge
Unlike gold, silver’s price is more sensitive to real‑time economic data. When inflation expectations rise, silver often follows suit, sometimes even more closely than gold. In a recent interview (linked within the article to a YouTube clip of Jain on Bloomberg), he said: “Silver is a double‑edged sword – it can act as a hedge, but its volatility also offers traders the possibility of outsized gains.”

3. The Risks and the Risks of Oversight

While the upside is compelling, Jain warns of several risks that investors must weigh:

• Currency Volatility
  Silver prices are quoted in U.S. dollars. A stronger dollar can compress silver’s price in local terms. The article links to an IMF forecast of a modest USD strengthening in the next 12 months, suggesting that foreign‑currency‑denominated investors may experience a drag on returns.

• Industrial Cycles
  If the EV market slows or if alternative conductive metals (e.g., copper or graphene) gain traction, industrial demand could wobble. The Business Today piece cites a Bloomberg Intelligence report that projects a 3 % slowdown in EV sales globally in 2026.

• Speculative Bubbles
  A 2023 academic paper (linked in the article to the Journal of Commodity Economics) cautions that the current silver rally is not purely driven by fundamentals, implying a potential for a “price correction” akin to the 2010 silver crash.

4. How to Get Involved

Jain breaks down the ways investors can gain exposure:

The article includes a side‑by‑side comparison chart of the average returns of silver ETFs versus gold ETFs over the past 10 years. Silver’s return outpaced gold by about 12 % annually, though the volatility index (VIX) for silver remained roughly double that of gold.

5. The Bottom Line: Is Silver the New Safe Haven?

Alok Jain concludes that silver offers a unique blend of hedging and growth that can help investors diversify in a world where inflation remains sticky and the geopolitical landscape is unpredictable. He does, however, stress that silver is not a “set‑and‑forget” asset: its price will continue to swing with both macro‑economic indicators and the ebbs and flows of industrial demand.

“For those willing to accept higher volatility for the possibility of higher returns, silver can be a compelling component of a diversified portfolio,” Jain advises.

Business Today’s piece, enriched by the embedded links to industry reports, academic research, and real‑time data dashboards, paints a picture of silver as a dynamic, growth‑oriented metal that is gradually stepping out of the shadow of gold. Whether investors will heed Jain’s recommendation remains a question of risk appetite and strategic horizon.

6. Further Reading

• UN Environment Programme (2024): Global Solar Energy Outlook – linked to the silver‑to‑solar panel demand discussion.
• Bloomberg Intelligence (2023): The Future of Electric Vehicle Manufacturing – provides context on industrial demand cycles.
• Journal of Commodity Economics (2023): Speculative Dynamics in the Silver Market – explores potential bubble risks.
• IMF World Economic Outlook (2025): Currency Forecasts – offers insight into the dollar’s impact on commodity pricing.

These additional sources deepen the article’s argument and provide a broader context for investors looking to navigate the evolving landscape of precious metal investments.