It was a year when the precious metals complex dazzled. When the year began, there was little hint of what was in store. But by the end of the year, gold witnessed at least 50 new highs, silver surged to an unknown territory above $72 an ounce, platinum soared to a fresh peak, and palladium prices were at a three-year high.
Overall, gold has increased by over 70 per cent, silver by one-and-a-half times, platinum by 160 per cent and palladium by over 120 per cent.
There was one uncertainty when 2025 began, though. It was over global trade issues, with the US threatening almost every nation. As China locked horns, the issue got heated further. Apart from that, there were quite a few reasons why the precious metal complex was on fire in 2025. However, the underlying factor that drove these metals to never-before-seen levels was the weakening US dollar. It fell 12 per cent in the first half. Though it recorded 2-3 per cent in the second half, most of the economies are not too confident about the greenback.
Silver, which has been in short supply since 2020, towards the end of 2025, began to show up starkly in the market. Those who had gone short or sold silver without having possession of the white precious metal have got only a reprieve rolling over their short positions. To add to the market woes, investments in silver mining have not been forthcoming, and the global market is depending on silver being produced as a byproduct of copper, lead, zinc and gold mining. Only 30 per cent of the white precious metal production comes from primary mines. Platinum soared as mine production in South Africa – which accounts for 70 per cent of the global production – was affected due to labour unrest. Besides, platinum and palladium gained as investors look to other asset classes after gold became pricey.
Renisha Chainani, head of research at Augmont, says lose monetary policy; US President Donald Trump’s tariffs uncertainty; Washington’s high debt levels and the US government’s 40-day shutdown; Central banks across the world buying gold suspecting the dollar’s durability, and investments in gold exchange-traded funds drove gold past $4,500 an ounce.
Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers, said, “2025 has been an exceptional year for precious metals. Gold has risen over 70 per cent and silver by nearly 150 per cent, outperforming most asset classes and even our own expectations.” Gadgil added, “While the industry anticipated silver crossing ₹1,70,000 per kg, based on macroeconomic indicators, it has moved beyond ₹2,00,000, with gold hovering around ₹1,30,000.“
Gold demand steady
“Despite high prices, jewellery demand in India has remained steady, with old gold emerging as a preferred currency for new purchases, once again proving that Indian households are among the most astute long-term investors,” he said.
Raghav Dhir, Director, Dhirsons Jewellers in New Delhi, said despite the precious metals’ upward trajectory, demand remains robust in India, as customers continue to view gold as a safe investment. The impact of higher gold prices is that consumers are shifting to lighter pieces, such as 14-karat and 9-karat, that deliver elegance without the weight, perfect for both everyday and festive wear, said Vikas Kataria, Promoter of DP Jewellers.
“This represents a strategic evolution where tradition meets affordability,” he said.
‘Silver lining’ in auto sector
Soaring silver prices, on the other hand, are not affecting the input cost of automobiles, and demand varies by vehicle type. “For instance, electric vehicles (EVs) consume 25-50 gms of silver per vehicle, which is 60-70 per cent higher than what is used by vehicles with internal combustion engines (ICE). This is due to EVs’ heavier deployment of silver in power electronics, high-voltage contacts, and control systems,” said Poonam Upadhyay, Director of Crisil Ratings.
In 2026, Augmont’s Chainani said there could be more US Fed rate cuts with the current Chief, Jerome Powell, stepping down in May. “US debts are a big elephant in the room, and the decision of US courts on the tariffs in the first week of January would be the moves and shakers of the precious metals market,” she said.
PNG’s Gadgil said, “The outlook for gold and silver remains bullish for 2026 as these are long-term assets, and disciplined investing through SIPs can help investors stay invested and unlock value over time… The key is to avoid speculation, ignore noise on social media, stay informed, and remain invested for the long term.”
Dhir said no downfall is anticipated in the market in precious metals prices. “While higher prices may lead to some moderation in purchase volumes, value-driven demand will remain strong as purchasing power stays relatively stable,” he said.
Positive outlook
Kataria said silver has emerged as a compelling investment choice, particularly among middle-class households seeking accessible entry into precious metals. “We’re not witnessing a temporary market adjustment but a lasting recalibration where aspiration and economic reality converge to redefine how Indians engage with precious metals,” he said.
Crisil’s Upadhyay said that despite higher silver prices, input costs will be manageable for automobiles despite higher silver prices as manufacturers were hedging their risks.
In 2026, the price movement of precious metals will depend on, apart from the factors that were behind this year’s phenomenal run, the availability of physical stocks, particularly silver and platinum.
Published on December 26, 2025