Gold and silver are not only integral to Indian culture but are also regarded as symbols of secure investment. In 2025, these precious metals are expected to see an increase in demand and prices. Experts predict that global economic uncertainties, increased purchases by central banks, and robust demand in the Indian market could drive gold and silver prices to new records.
This makes it crucial for investors and consumers to understand how these price changes might unfold and what they signify for them.
What’s Happening?
Gold and silver prices have witnessed a steady rise in recent times. By 2025, gold is expected to reach Rs 85,000 per 10 grams, and silver may soar to Rs 1,10,000 per kilogram, significantly higher than their current levels.
In early January 2025, gold prices saw a jump of Rs 130 per 10 grams, while silver prices recorded a slight dip. Despite these fluctuations, demand remains strong in major cities like Delhi, Mumbai, Chennai, and Kolkata.
Reasons for Growing Demand
The rising demand for gold and silver is driven by several factors:
Central Bank Purchases: Globally, central banks have been buying gold on a large scale to safeguard their reserves against inflation and economic instability. After record purchases in 2023 and 2024, this trend is expected to continue in 2025.
Traditional Demand in India: Gold and silver have always held cultural and traditional importance in India, especially during weddings and festivals. Personal investments and increased purchases of jewellery further fuel this demand.
Performance of Gold and Silver
In 2024, gold and silver provided exceptional returns to investors.
- Gold peaked at Rs 80,000 per 10 grams on October 31, 2024.
- Silver touched Rs 1,00,000 per kilogram on October 23, 2024.
Both metals delivered returns exceeding 25%, proving to be a profitable investment choice over the year.
Gold prices are based on 24-carat gold per 10 grams, and silver prices are per kilogram.
The surge in prices was attributed to global economic and political instability, which drove people to view these metals as safe investment options, especially during times of heightened risk in other assets. Experts believe this trend will persist as gold and silver remain trusted investments during uncertain periods.
What It Means for Investors?
The year 2025 could present several new opportunities for investors. The anticipated rise in gold and silver prices could offer security and stability to their portfolios. According to CNBC TV18, experts expect falling interest rates and continued central bank purchases to support gold prices, with potential returns of 10-12%.
Investors looking to diversify their portfolios might consider allocating 10-15% to gold and silver. Additionally, investment avenues like ETFs and digital gold provide simple and efficient ways to invest in these metals.
What’s Next?
Gold prices are expected to continue rising in the future, supported by factors such as:
- Geopolitical Tensions: Increasing global conflicts and the possibility of trade wars may lead people to seek gold as a safe haven.
- Central Bank Policies: With inflation nearing targets, central banks are likely to maintain accommodative policies.
- Regional Uncertainties: Ongoing tensions in the Middle East and Eastern Europe may further reinforce gold’s appeal as a secure investment option.
Silver, too, is projected to rise alongside gold, potentially reaching Rs 1,10,000 per kilogram. This growth will be driven by strong industrial demand from sectors like renewable energy and electric vehicles.
*This article is for informational purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
