Will silver prices keep rising in 2025 and beyond? Here's what Tata and Kotak mutual funds say

While no one can accurately predict the future of any asset, including precious metals like silver and gold, investors may look at expert opinions to form their own conclusions before investing. In this context, this article looks at what two fund houses, Tata Mutual Fund and Kotak Mutual Fund, say about the future of silver prices.

Before reading further, please note this article is for information purposes only. Silver has been a very volatile asset in the past, seeing up to 80-90% drawdowns. There is no certainty that it won't happen this time.

What does Tata Mutual Fund think about silver?

In its recent 'Silver Outlook' report for October 2025, Tata Mutual Fund said that a large silver supply deficit and US FED cuts may continue to support silver prices over the medium to long term for three to five years.

"We believe strong investment demand, large Silver supply deficit and Fed cuts may continue to support Silver prices over the medium to long term for three to five years horizon," Tata MF said.

"Silver may outperform Gold in the medium term with a favorable Gold/Silver ratio, recovery in developed economies, strong industrial demand especially from China, and global supply deficit projections," Tata MF said.

However, it cautioned that "Silver is a developing growth story, and the trend is highly depended on broad recovery in industrial demand. Investors should be mindful of short-term volatility and macro headwinds."

According to Tata MF, there are five major factors behind the current silver rally:

• Industrial demand explosion

• US FED rate cut, tailwind for silver prices

• Continuous 5 years for the supply deficit

• Rupee depreciation amplifying silver returns

• Gold-silver ratio expected to slip towards 75, suggesting outperformance of silver over gold.

What the Kotak Mutual Fund

Silver is currently trading at a premium relative to international prices because of a shortage of physical silver in the domestic market.

However, Kotak Mutual Fund continues to maintain a bullish outlook for silver.

"The selling premium remains modest at approximately 3% and we continue to maintain a constructive outlook on silver from a long-term investment perspective. This measure is purely aimed at protecting investors from entering at inflated domestic premiums," Kotak Mutual Fund said.