Why Gold & Silver Are Beating Stocks in 2025: Global Risks Drive Rally

28 Aug
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Investors are shifting away from the volatile equity markets and towards the stable precious metals such as gold and silver.

These metals have performed better than many global equity indexes over the past year, reinforcing their reputation as wealth-preserving assets. Gold and silver deliver returns and peace of mind as the stock market is volatile and central banks struggle to control inflation.

This blog will cover why precious metals are in demand, what this means for investors and why it might be a good time to sell or invest in them, particularly in India.

Why Are Gold and Silver Outperforming?

The Global Flight to Safety Amid Geopolitical Risk

With ongoing conflict across Eastern Europe and the Middle East and trade tensions in Asia, we are watching a world on edge. Historically, whenever global tension rises, investors will sell most of their investments to buy safe-haven assets, and none more symbolic, and resilient, than gold.

Gold has surged past ₹100000 per 10 grams in India this year, with silver following suit, crossing ₹120000 per kg. These price movements are being driven largely by uncertainty—not only geopolitical but also economic. Investors are hedging against worst-case scenarios by increasing their exposure to physical and digital gold.

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2. Inflation and Currency Weakness

Even as central banks attempt to bring inflation under control, real-world prices remain stubbornly high. Currencies like the Indian Rupee are regularly under pressure, and in developed markets, even the dollar has shown signs of weakness.

Gold and silver act as inflation hedges—they have tended to hold their value as currency purchasing power deteriorates. In times like these, preserving wealth is more important than offensive strategy and tangible assets, like gold and silver, become more valuable than speculative assets.

3. Stock Market Volatility

The equity markets are swinging from inconsistent earnings, shifting interest rates, expectations and tech sector corrections. This is causing significant retail and institutional investors to allocate low price equities are ETF holdings composed of gold or silver and physical metals for allocation.

In India, gold ETFs saw over 30% returns during the last financial year and outperformed the Nifty 50 and Sensex. Silver ETFs also posted impressive gains, buoyed by both investor sentiment and industrial demand.

India's Love for Gold - Culturally and Financially

Gold has a certain status in Indian households - it is a source of pride, a traditional asset, and now a form of financial planning.

As gold prices rise to record levels, many Indians are looking to liquidate dormant jewelry and reinvest or use the funds for other needs like home buying, business expansion, or education. You can particularly notice this shift in urban centers like Delhi, where financial awareness is on the rise.

Trustworthy gold buying companies in India are increasingly becoming available providing a genuine and trustable source for gold purchases that can be more transparent, provide real time pricing and pay cash on the spot. If you're in the capital, finding a professional gold jewelry buyer in Delhi has never been easier.

Also Know More About :- India^s Gold Share in Forex Reserves Doubled in Just Four Years: What It Means for the Economy and Investors

Tips For Selling Gold

Purity: Look for buyers that use non-destructive methods like XRF testing to measure the gold with accuracy.

Market Rates: Make sure the buyer offers prices based on live gold market prices and any deductions are minimal.

Instant Payment: Reputed buyers will pay you in cash or transfer funds instantly.

Documentation: A transparent company will give you a receipt and/or valuation certificate for every transaction.

Comparing Precious Metals and Equities

Here’s a snapshot of why gold and silver have become essential components of modern portfolios:

As a result, investors nearing retirement, or those seeking capital protection, are favoring precious metals over high-beta stocks.

Why Silver Is Making Waves

Gold might be the more popular metal—particularly among investors—but silver is closing the gap—and not just from investors.

Industrial Demand Is Rising

Silver plays a role in electronics, solar panels, electric vehicles, and medical devices. As the transition to green energy accelerates, demand for silver is set to explode, pushing prices up.

Silver is Still Undervalued

The gold-to-silver price ratio recently touched 90:1—far above the long-term average of 65:1. Such gaps have often been followed by strong rallies in silver as the ratio reverts.

This makes silver attractive for short-term investors and long-term holders.

The Future

The outlook for precious metals is still positive:

Gold could reach ₹100000 per 10 grams in India should geopolitical risk remain elevated, and central banks continue to buy gold aggressively.
Silver could reach ₹120000 per kg in the next 12 months should industrial demand keep picking up pace.
Central Banks around the world, including the Reserve Bank of India, are buying gold at record levels - clear evidence they trust its value in the long run.

The Indian retail investor or gold seller can find this as a strategic window to realise gains, or invest more into precious metals through digital methods, SGBs or ETFs.

Conclusion

Gold and silver have once again shown that in a world of economic turmoil, real value is built upon stability, not speculation. Now is the time to act, not wait until the next market peak or panic .

Only trust experts if you want to get the best price for your gold. 24-Karat is a gold buying company in India that offers instant payments and transparent evaluations. It is simple, safe and rewarding to sell gold. Visit Today!

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