How much gold & silver can make your portfolio shine alongside mutual funds?
Gold Price: Gold and silver have emerged as the biggest wealth creators in 2025, even leaving behind some of the top-performing equity mutual funds. Investors have witnessed a historic rally, with gold delivering nearly 40 per cent returns so far this calendar year, while silver has surged by 50 per cent in just one year.
Why are prices hitting record highs?
Experts attribute the sharp rally in precious metals to global uncertainty, geopolitical risks, and heavy buying by central banks.
Kshitiz Mahajan, CEO of Complete Circle Wealth, said, “China and Russia are filling their wallets with gold. Whenever uncertainty in markets rises, gold shines brighter. Silver, with its strong industrial demand, has even outperformed gold recently. The Russia-Ukraine war has disrupted silver supply since Ukraine is a major producer, further fueling prices.”
The global backdrop of the rally
Mohit Gang, CEO & Co-Founder of Moneyfront said that the surge in gold is not new. Historically, gold prices spiked during the Cold War in the 1980s, touching $850 per ounce, before falling to $450 by 2000. Between 2011 and 2020, gold struggled again, sliding from $1900 to $1200-1300.
However, since 2020, a fresh rally has emerged. Mohit Gang highlighted factors such as US tariffs, de-dollarisation, and rising geopolitical tensions as reasons for the ongoing rally. “Central banks across the globe are aggressively buying gold, adding further strength,” he said.
Should investors buy at record highs?
While the rally has rewarded early investors, experts caution against chasing prices blindly.
“Given the speed of this rally, it’s difficult to say if gold and silver can move much higher from here,” said Gang. “A period of caution is required. Gold rallies are always long, but the correction periods are even longer. Investors should keep this in mind before committing large sums at record levels.”
Indian investors rethinking allocation
According to Gang, many Indian investors now regret missing out on this rally. Traditionally, gold has always been seen as a hedge in Indian households, but this year, silver has added another dimension due to its industrial utility.
43 record highs in gold YTD
In 2025, the yellow metal has made 43 record highs. Gold has experienced a significant rally year-to-date, with prices surpassing USD 3,800 per ounce. In India, gold prices reached Rs 116,497 per 10 grams on September 29, 2025, and breached the Rs 121,100 per 10 grams mark on October 1, 2025.
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