Amid shifting global monetary policy, persistent inflation pressures, and rising industrial demand, precious metals enjoyed a stellar year, led by silver.
Its extraordinary 165% rise has evolved from just being a safe-haven bet to a smart portfolio diversifier, and also the best-performing asset of 2025.
Silver, which has crossed the ₹242,000 per kg mark in the domestic market, has eclipsed the rise seen in the other precious metals like gold, even as it has witnessed a spectacular bull run of 82% in 2025.
The scorching rally has been supported by elevated central-bank purchases, inflows to exchange-traded funds and three successive interest-rate cuts by the US Federal Reserve. US President Donald Trump’s aggressive moves to remake global trade, along with threats to the Federal Reserve’s independence, added momentum to the rally earlier this year.
Equities lag precious metals
In comparison, the returns offered by the equity market seem smaller. Indian stock markets were particularly the worst hit. They underperformed most other major markets this year, hurt by the steep 50% tariffs by the US on Indian exports, a slowdown in earnings and record selling by foreign portfolio investors.
India’s underperformance this year is not about weak fundamentals, but about sentiment and missing foreign flows, said Harshal Dasani, Business Head at INVAsset PMS. FIIs sold Indian stocks worth ₹158,409 crore this year, according to NSDL data.
Nifty 50 has risen 10% this year despite these headwinds as the global macroeconomic environment was supportive. Crude prices have remained below $70 per barrel, easing inflation and external pressures. Domestically, GDP growth is around 8.2%, RBI has cut rates, tax measures have supported consumption, and festive demand has lifted activity. Retail and domestic institutions continue to buy, supporting the Indian indices.
“The only overhang for India is FII caution, largely linked to uncertainty around India-US trade relations. Once clarity emerges and flows return, India is better placed for a sharp breakout than a slow grind,” Dasani opined.
Among the global markets, South Korea’s KOSPI has topped the charts in the equity investing space as it rallied 72%, but still lagged the rise seen in precious metals.
US, Japan, China and other markets have jumped up to 32% this year. 2025 also emerged as a robust year for Pakistan’s stock market as the KSE-100 index saw a 55% rise.
Realty sees strong growth
The returns offered by the real estate market managed to beat the equity market gains this year, as a study by 1 Finance, quoted in The Economic Times, showed that the India’s residential real estate market delivered a robust 15% total return over the past year.
The data showed that the Housing Total Return Index (TRI) rose from 228 in September 2024 to 263 in September 2025, reflecting a sharp appreciation in residential property values across top Indian cities.
Premium and luxury housing emerged as the dominant demand segment. Homes priced above ₹10 million accounted for more than half of all sales across major cities, underscoring the shift in affordability, aspiration, and buyer profile, according to Knight Frank India.
Tier-2 and Tier-3 cities continued to expand their share of residential activity, supported by infrastructure upgrades, rising household incomes, and proactive state-level reforms, it added.
Bitcoin bleeds
The only asset class that bled this year was the crypto market. A sharp selloff in October knocked Bitcoin from records, draining momentum in the world’s largest crypto token.
Bitcoin prices are down about 30% since then and over 6% for the year as the market is still struggling to regain ground after the October crash. According to a Bloomberg report, trading volumes are thin and retail speculation has faded.
Part of the reason behind the fall in Bitcoin is technical, as the prices have slipped below its 365-day moving average, while another drag has been sustained selling by long-term holders. Pratik Kala, a portfolio manager at hedge fund Apollo Crypto, was quoted by Bloomberg as saying that Bitcoin’s price action this year has been “notably disconnected from the ultra-bullish news cycle” surrounding the asset.
Nripendra Yadav, Senior Commodity Research Analyst at Bonanza, said that the performance of bitcoin and cryptocurrencies will remain liquidity-driven, more volatile, and policy-sensitive than metals. Cryptos could do well in risk-on phases, but leadership is uncertain, he added.
Which asset could dominate next year?
Commenting on which asset could lead next year, Yadav said that factors like policy easing, growth momentum, and inflation stickiness would be the key determinants.
Precious metals may remain strong next year as rate cuts are likely to be gradual, not aggressive, central bank gold buying remains robust, and silver could continue outperforming if industrial demand holds, he believes.
Given the likely environment of slower growth, easing policy and geopolitical risks, portfolios should tilt toward resilience with optional upside, according to him. He advises that an investor should maintain 15%-25% in precious metals, out of which 40% should be given to silver. While equities should be 35-45%, and investment in fixed income/cash should be around 30-35%.