In 2025, precious metals performed exceptionally, with silver increasing nearly 170%, significantly outperforming gold’s 76% rise. The gold-silver ratio decreased from 110 to 65, indicating that silver’s price growth was more rapid. This shift was attributed to a constrained physical supply of gold coupled with periods of backwardation in silver, which signaled tight physical markets. Silver’s ascent was bolstered by strong industrial demand linked to the energy transition, solar technology, and rising electrification, while gold benefited from safe-haven investments amid geopolitical uncertainties.
Gold is evolving into a strategic reserve asset due to sustained central bank purchases and macroeconomic volatility. The report also highlighted a remarkable increase in domestic gold and silver ETFs, with assets under management rising over 150% in 2025. Positive ETF flows in the latter half of the year indicated renewed investor engagement following a prolonged outflow period. Currency dynamics, including a weaker dollar and depreciating rupee, further supported domestic commodity returns.
In the base metals sector, copper prices soared to approximately $13,000 per tonne, marking a 40% gain, with demand for refined copper projected to increase by 2.1% in 2026. Aluminium and zinc also saw price increases of 17% and 5%, respectively. The report anticipated selective medium-term opportunities in base metals while highlighting that the energy markets remain sensitive to supply and demand fluctuations.
Looking ahead to early 2026, the report predicts that gold and silver will continue to be valuable assets, supported by persistent central bank demand and limited supply growth. Though the market may consolidate rather than see drastic declines, there remains caution for investors as the market environment is expected to be less favorable than in 2025. The report encourages investors to adopt a buy-on-dips strategy for both gold and silver, emphasizing that commodities are shifting from momentum-dependent to strategically allocated assets amid ongoing market volatility.
