Chennai: Precious metals gold and silver are witnessing a historic rally in 2025, drawing strong interest from investors. In the Indian market, gold futures have surged past ₹1,17,000 per 10 grams, while silver prices hit nearly ₹1,44,200 per kilogram. The surge is being driven by:
- Global safe-haven demand
- Anticipation of US interest rate cuts
- Heightened geopolitical tensions
Gold: The Defensive Hedge
Gold has long been regarded as the traditional store of value. Investors often turn to it as a hedge against:
- Inflation
- Currency volatility
- Market instability
Its relatively lower volatility makes it a safer bet for conservative investors. Analysts believe gold prices will remain supported as long as monetary easing and geopolitical concerns persist. However, after such a steep rally, the short-term upside may be limited.
Silver: The High-Risk, High-Reward Metal
Silver, on the other hand, has outperformed gold in terms of percentage gains this year. Apart from safe-haven buying, silver’s demand is strongly tied to industrial use—particularly in:
- Electronics
- Renewable energy (such as solar panels)
This dual nature gives silver greater upside potential during growth cycles, but its higher volatility also exposes investors to sharp declines if industrial demand weakens.
Expert View
Market strategists recommend:
- Keeping gold as the core holding in portfolios for stability.
- Using silver as a tactical allocation for higher returns, especially on pullbacks.
- Adopting a staggered buying approach to minimize risks of investing at peak levels.
Bottom Line
- Gold = Resilience and stability during uncertainty.
- Silver = Greater risk-reward potential with industrial growth.
A balanced allocation, weighted more on gold with selective exposure to silver, is seen as the best way to hedge risks while capturing growth opportunities in the current volatile market.
Originally published on 24×7-news.com.
