New Delhi

Gold and silver emerged as the world’s top-performing asset classes in 2025, outperforming equities, bonds and currencies as investors sought safety amid geopolitical uncertainty, shifting US monetary policy and supply-chain disruptions.

Silver stole the spotlight, surging over 169 per cent during the year on the back of strong industrial demand and persistent supply shortages. Gold followed closely, rising more than 76 per cent, reaffirming its role as a core hedge in volatile times.

The rally was sparked by the US Federal Reserve’s policy pivot, with three rate cuts weakening the dollar and lifting bullion prices. Momentum strengthened as Donald Trump’s return to the White House revived tariff concerns, while central banks accelerated gold purchases as part of a broader de-dollarisation strategy.

Supply constraints further tightened the market. Silver faced its fifth consecutive annual deficit, driven by mine shutdowns and rising costs, with another shortfall expected in 2026. Gold prices were anchored by sustained buying from central banks led by China and India.

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In India, high prices reshaped demand patterns. Jewellery consumption softened, but investment in bars and coins rose sharply as households prioritised safety over discretionary spending.

After a historic run, analysts expect near-term consolidation. However, with central-bank buying, geopolitical risks and tight supply conditions intact, gold and silver enter 2026 as strategic assets rather than speculative trades.