As India enjoys another year of independence, investors have plenty to consider and especially those monitoring the performance of important asset classes. In the last 12 months, even though India's top equity benchmarks, Nifty 50 and Sensex delivered decent returns, gold and silver outshined them convincingly.
This was particularly evident for portfolios of investors who place their bets on safety and stability and longer-term assets that hold value. With a variety of global and domestic changes affecting market sentiment, precious metals emerged as clear winners.
The world economy did not get completely stable over the past year. Global conflicts, uncertainty about U.S. interest rate decisions and constant flashpoints in geopolitics flashpoints kept markets on edge.
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Gold, often referred to as the ultimate safe haven, was the preferred asset for those seeking to protect themselves from the volatility risk. Silver, though more unstable than gold, has also benefitted from its close ties with monetary assets.
However, equity markets experienced extreme mood swings, based on global indicators such as earnings expectations, global cues, and fund flows.
Inflation cooled in India when compared to its highest levels in 2022-23. However, it was still above RBI's comfort zone during certain times, especially for energy and food.
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For centuries, precious metals, particularly gold, have served as a hedge against rising inflation. They can help retain purchasing power as fiat currencies degrade.
While equities can outperform inflation over the long term, gold and silver tend to react more quickly during inflationary peaks providing the investor with timely and efficient protection and gains.
Over the past year, the Indian rupee weakened slightly against the U.S. dollar. This shift includes from around ?82/USD to over ?84/USD. Because India is largely reliant on imports of gold and silver, even stable global prices resulted in higher domestic prices due to currency depreciation.
The weakness of the rupee boosted returns for Indian investors, particularly for individuals who held physical metals or metals or ETFs. This made gold and silver an attractive choice when compared to other asset classes. The currency impact proved to be an important factor of the domestic price rise.
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The outperformance of silver is not just about the demand for investment - it includes a competitive advantage due to its increasing industrial usage. It's essential in:
Solar panel manufacturing
Electric vehicles
Semiconductors
5G infrastructure
As the world economy is slowly moving to cleaner technology and energy sources, the demand for silver has been increasing, bringing prices up. Many analysts consider silver as a double-purpose asset, beneficial for both industrial and investment.
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While Nifty 50 and Sensex climbed roughly 14% year-on-year, the broader market was mixed. Certain sectors like FMCG, IT, and even banking showed muted returns, while mid- and small-cap stocks experienced both rallies and steep corrections.
Gold and silver are more stable for investors who want to make more predictable returns, especially in uncertain times. They also had the advantage of avoiding the sectoral concentration risk.
Portfolio diversification has become a priority for Indian investors. Many have moved beyond traditional instruments such as stocks and fixed deposits. Due to their historically low correlations with stocks, gold and silver are gaining in popularity. This helps reduce portfolio volatility.
Financial planners are encouraging investors to allocate 5-15% of their portfolio to precious metals. This created a demand for gold and silver in all its forms.
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| Asset Class | Aug 2024 Price | Aug 2025 Price | Return (%) |
|---|---|---|---|
| Gold (10gm) | 72,700 | 1,02,700 | +41.3% |
| Silver (1kg) | 85,000 | 1,20,000 | +41.2% |
| Nifty 50 Index | 24,823 | 24,870 | +0.19% |
| Sensex Index | 81,086 | 81,306 | +0.27% |
You are probably sitting on some solid returns if you have already invested in gold and silver. This may give you an opportunity to do some partial profit taking, or a complete rebalancing according to your own financial strategy.
If you have idle gold in the form of jewellery or coins, now could also be a good time to consider liquidation, particularly when the prices are near historical highs. If you are located in the capital, there is no shortage of reputed options to sell gold Delhi, including verified buyers that offer competitive rates and transparency.
It's crucial that new investors don't chase past returns. Look at gold and other precious metals as diversification and long-term hedges within your portfolio.
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In a year that was both rewarding but challenging, gold and silver have done better than Indias best stock indices not just in return numbers, but in consistency and stability.
Precious metals continue to be effective tools for wealth preservation, as a hedge against inflation, and as a means of diversification in a portfolio. Whether you are buying for investment, saving for a wedding, or unlocking value from inherited jewellery, the case for metals remains strong.
As investors search for both stability and potential upside, 24 Karat continues to be a trusted gold jewellery buyer Delhi. You can expect to get the best value without compromise. Ready to turn your precious into real value? Visit 24Karat today Trust, transparency and top value payouts await!
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Gold and silver gained because of global uncertainty; inflation concerns and a rise in retail and institutional demand.
Yes. You must consider having a balanced portfolio overall. The experts suggest 5-15% in precious metals for diversification purposes.
A weaker rupee makes importing gold and silver more expensive, which can raise domestic prices even if global prices do not increase.
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