Precious metals led the rally, with silver posting extraordinary gains and gold scaling fresh lifetime highs, supported by a potent mix of investment demand, central bank buying, geopolitical tensions and a sustained decline in the dollar index. Industrial commodities such as copper and aluminium also saw sharp upside, benefiting from structural demand linked to artificial intelligence, electrification and the global energy transition.
Market participants say the rally marked a decisive shift after years of underperformance. “Post the period of 2009-11 and during the brief Covid phase, this is one of the best years we have seen for commodities,” said Viral Shah, President and Head of Brokerage at 360 ONE. He pointed to record global inflows, with assets under management in commodities nearing the $1 trillion mark, as investors across geographies pivoted towards tangible assets.
Gold and silver were at the forefront of this renewed interest. According to Naveen Mathur, Director of Commodity and Currencies at Anand Rathi, silver delivered close to 180% returns, with a significant portion of those gains coming in the final quarter of the year. Gold, meanwhile, rose over 70%, fuelled by persistent investment demand and aggressive central bank purchases. “For silver, we have not seen these kinds of returns since 1979,” Mathur said, describing 2025 as a “fabulous year” for the commodities business.
Experts say macroeconomic factors played a decisive role. Tariff-related uncertainties, ongoing geopolitical flashpoints and concerns around fiat currencies pushed investors towards assets perceived as stores of value. “The dollar is losing value, other paper currencies are losing value, and everyone is rushing to get hold of something real,” said Kunal Shah, Vice President and Head of Commodities Research at Nirmal Bang. He added that limited incremental supply across several commodities over the past few years amplified price moves once investment demand picked up.
The rally also reshaped investor behaviour in India. Brokerages and exchanges reported a sharp rise in volumes and participation, with retail investors, high net worth individuals and institutional players increasingly adding commodities to their portfolios. “In the last six to eight months, we have seen a lot of inquiries about getting into commodities because everyone believes the time for commodities has come,” said Jigar Pandit, Director at Sharekhan Comtrade.
While gold and silver dominated flows, investors who felt they had missed the precious metals rally began exploring alternatives such as copper, exchange-traded funds and delivery-based strategies. Market participants say this broadening interest underlines how commodities are now being viewed not just as a trading opportunity, but as a strategic portfolio allocation.
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Looking ahead, experts are cautious on returns but constructive on the asset class. With global debt levels elevated, geopolitical risks unresolved and structural demand for metals tied to technology and energy transition intact, commodities are expected to remain in focus through 2026. “Forget about the quantum of returns next year,” Shah said. “But commodities will continue to remain in flavour going forward.”
After years on the sidelines, 2025 may well be remembered as the year commodities decisively reclaimed centre stage — and investors are watching closely to see if the momentum carries into the next cycle.
Watch accompanying video for entire discussion.