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.
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’s aggressive moves to remake global trade, along with threats to the Federal Reserve’s independence, added momentum to the rally earlier this year.
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.
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%.
