Why Are Analysts Favoring Gold Despite Silver’s Strong Outperformance?
About the Precious Metals Rally:
In 2025, the rally in precious metals has taken center stage, with both gold and silver showing strong performance. However, most analysts are recommending a higher allocation to gold, despite silver delivering bigger gains this year. The preference comes from gold’s reputation as a safer, more stable asset, especially in uncertain macroeconomic and geopolitical environments.
Spot gold prices have surged 47% in dollar terms this year, reaching $3,897 per ounce. Meanwhile, spot silver has risen 62%, touching $48.5 per ounce, making it one of the best-performing asset classes in 2025.
How Have Gold and Silver Performed in 2025?
As of October 2025, the numbers clearly show that silver has been the better performer in percentage terms. Yet, analysts continue to favor gold for allocation, given its safe-haven qualities during uncertain times. On the domestic market, MCX spot gold was up 54% to ₹71,700 per 10 grams, while silver climbed 68.7% to ₹45,000 per kg.
| Asset | Price (CY25) | % Change |
| Gold (Spot, $/oz) | $3,897 | +47% |
| Silver (Spot, $/oz) | $48.5 | +62% |
| MCX Gold (₹/10g) | ₹71,700 | +54% |
| MCX Silver (₹/kg) | ₹45,000 | +68.7% |
Why Do Analysts Prefer Gold Allocation?
Even though silver has shown stronger returns this year, experts are recommending a higher allocation to gold. Gold is considered a defensive asset and offers protection against macroeconomic shocks such as geopolitical risks, inflationary pressures, and potential global slowdowns. A balanced portfolio often includes 60% allocation to gold and 40% to silver, according to wealth managers.
💡 Gold is viewed as “insurance” in a portfolio, while silver is often treated as a high-beta asset that benefits more in cyclical upswings.
What Risks Should Investors Watch Out For?
Market experts caution that both gold and silver are due for a short-term correction. With central bank buying and geopolitical tensions driving much of this year’s rally, any easing in these pressures could lead to temporary dips. Analysts suggest staggered investing in gold on dips rather than chasing silver’s high returns.
⚠️ Silver remains more volatile than gold and is harder to hold physically due to bulk and purity risks. ETFs or exchange-traded platforms are often better options for retail investors.
Outlook for Indian Markets and F&O Traders
While gold and silver have outperformed, the Nifty 50 has given only a modest 5% return in 2025, with broader indices such as midcap and smallcap in negative territory. In contrast, non-conventional assets like bitcoin gained over 22%, but still lagged precious metals. For traders in Nifty and BankNifty futures, commodities like gold remain a hedge against equity volatility.
For traders seeking diversification beyond equities, a staggered allocation into gold ETFs alongside Nifty and BankNifty strategies may offer a balanced approach.
Many investors are now keen on practical trading strategies. If you are looking for expert F&O trading guidance, you can check here: 👉 Nifty Tip | BankNifty Tip
What Does This Mean for Investors?
Going forward, steady demand from central banks and investors is likely to keep gold prices firm, while silver’s industrial demand could trigger volatility. Analysts advise using corrections as buying opportunities in gold and being selective with silver exposure through ETFs or digital platforms. Long-term investors should continue to treat gold as a core holding, while silver can be used tactically for higher-risk, higher-reward allocations.
Investor Takeaway: Despite silver’s superior performance in 2025, gold remains the preferred asset for long-term allocation due to its safe-haven qualities and stability. Investors should consider a mix of gold and silver exposure through ETFs to reduce costs and improve liquidity. Explore more detailed market insights and trading strategies at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
