Silver outperforms gold as precious metals surge amid global uncertainty
Hyderabad: Silver outperforms gold in a year marked by heightened global uncertainty, delivering exceptional returns as investors turned to precious metals for safety.
Silver prices surged by more than 137 per cent during the year, far ahead of gold, which gained around 68 per cent. Equity market volatility strengthened demand for defensive assets, with silver clearly leading traditional investment options.
Gold prices rose amid geopolitical tensions, inflation concerns, and expectations of interest rate cuts by the US Federal Reserve. Sustained buying by global central banks provided strong underlying support.
For three consecutive years, central banks purchased over 1,000 tonnes of gold annually in 2022, 2023, and 2024. Meanwhile, global investors continued to deploy funds through gold exchange-traded funds to preserve value.
Silver outperforms gold as industrial demand accelerates
Major global banks remained bullish on gold’s medium-term outlook. Goldman Sachs raised its 2026 year-end gold price target to $4,900 per ounce, citing central bank demand and ETF inflows. Deutsche Bank projected gold prices at $4,450 per ounce in 2026.
However, silver outperforms gold mainly due to factors beyond safe-haven demand. Strong industrial usage played a decisive role in driving prices higher.
Rising consumption from solar power, electric vehicles, and electronics sharply increased silver demand. At the same time, supply constraints tightened the market, pushing prices upward.
Silver outperforms gold with stronger 2026 outlook
This dual role as both a precious metal and an industrial input enabled silver to deliver more than double the returns of gold in 2025. Market experts said this trend could extend into 2026.
Analysts projected that strong industrial demand, limited supply, and supportive global trends could lift silver prices by another 15 to 20 per cent next year. Some specialists expected an additional 20 to 25 per cent return in the first half of 2026, while advising gradual investment during corrections.
Gold’s outlook also remained positive for 2026. Continued central bank buying, possible US rate cuts, and ongoing geopolitical risks were expected to support prices. Analysts said monitoring central bank activity would remain critical for future price signals.
Meanwhile, both metals hit fresh record highs on the MCX on Wednesday morning. A weaker US dollar and expectations of further US Federal Reserve rate cuts supported prices.
Gold futures for February rose 0.42 per cent to an all-time high of Rs 1,38,469 per 10 grams. Silver futures for March jumped nearly 2 per cent to touch a record Rs 2,23,742 per kg. In global markets, gold crossed $4,500 per ounce for the first time on strong safe-haven demand.