As precious metals continue to shine in 2025, investors are weighing their options between gold and silver. Despite silver’s stronger rally so far this year, analysts largely favour a higher allocation to gold, citing its stability and safe-haven appeal.
Performance in 2025
In the current calendar year (CY25), spot gold prices have soared 47.3% in dollar terms to a record $3,896.8, while spot silver has jumped 62% to $48 per ounce.
On the MCX, gold is up 54% to ₹1,16,933 per 10 grams, and silver has surged 68.7% to ₹1,44,888 per kg.
In comparison, equity benchmarks Nifty and Sensex have delivered only 5% gains, while midcap and smallcap indices remain in the red. Even bitcoin has lagged, rising just 22.2% in CY25.
Why Precious Metals Are Rallying
Analysts attribute the uptrend to:
- Heavy central bank purchases
- Rising geopolitical tensions
- Trade tariff uncertainties
- Rate cut expectations
While some correction is possible, experts say the long-term trend remains positive, making dips an opportunity to accumulate.
Analyst Strategies: Gold Over Silver
“This is the early stage of a long commodity supercycle,” said Harshal Dasani, Business Head, INVasset PMS.
He recommends a balanced 60:40 split — 60% gold for stability and monetary hedge, 40% silver for growth potential.
G Chokkalingam, Founder of Equinomics Research, advises focusing on gold in the short term, calling silver more volatile.
“Steady demand is likely to keep gold prices firm,” he said.
Gaurang Shah of Geojit Investments agrees both metals may witness a minor correction, but suggests staggered buying on dips.
Manav Modi of Motilal Oswal Financial Services added that any easing in geopolitical or tariff risks could trigger profit-booking in the near term, but fundamentals remain strong.
Digital vs Physical Investment
Experts recommend digital gold — through ETFs and mutual funds — over physical holdings due to lower costs and higher liquidity.
Silver, being bulkier and harder to store, is also better held digitally.
Modi suggests allocating at least 10% of a portfolio to gold and silver combined, based on risk appetite and investment horizon.
Price Outlook and Targets
- Spot Gold: Likely to test $3,875 levels amid a weaker dollar and lower US bond yields (ICICI Securities)
- MCX Gold (Dec): Expected to rise towards ₹1,17,500, with support at ₹1,15,200
- MCX Silver (Dec): Seen heading towards ₹1,45,500, with support near ₹1,41,700
ICICI Securities also noted that weak US job data and risk of a government shutdown could further support bullion prices.
Bottom Line
Gold for stability and safety
Silver for growth and higher volatility
Balanced allocation with staggered buying on dips
Precious metals remain attractive for 2025, but investors should adopt a disciplined approach, using corrections as buying opportunities rather than chasing momentum.