Indian investors look at Gold and Silver as vital assets due to their price fluctuations

Gold and silver have long been considered vital assets for Indian investors, deeply rooted in tradition and investment strategies. In recent years, the interplay between these two precious metals has garnered attention due to their fluctuating prices, influenced by global economic conditions, supply and demand dynamics, and cultural factors.

In 2025, both gold and silver experienced significant price surges in the Indian market, driven by a combination of global economic uncertainty, currency fluctuations, and shifting investment trends. As of early August, 24-carat gold is trading around ₹1,02,500 per 10 grams—an all-time high—marking a staggering year-to-date gain of nearly 38%.

At the same time, silver has outperformed gold in percentage terms, rising about 30% in 2025 so far to hover between ₹1,16,000 and ₹1,17,000 per kilogram. While gold’s momentum is largely anchored in its role as a store of value and hedge against volatility, silver’s surge is being powered not only by investor interest but also by strong industrial demand from sectors like solar energy, electric vehicles, and electronics.

The current investor sentiment shows a shift: while conservative buyers continue to accumulate gold for stability, a growing number of investors are turning to silver for its relatively lower entry cost and potential for higher short-term returns, despite its greater volatility.