From ₹4,400 to ₹1.4 Lakh: Gold Delivers the Highest Returns in 25 Years, Outshining All Assets

Gold and silver prices surged significantly in 2025, marking the best annual performance for these metals since 1979. Over the past 25 years, gold has delivered the highest returns among all major investment assets, leaving equity markets far behind.

Gold Leads, Silver Follows
In India, gold has emerged as the star performer of this century. Silver, too, gained traction, becoming a preferred choice for traders and investors. In comparison, stock markets lagged considerably. This trend is not limited to India alone—global markets witnessed a similar phenomenon. Gold prices jumped more than 70% this year, while silver soared approximately 160%, marking their strongest performance since 1979.

According to a report by Times of India, gold prices in India have risen from around ₹4,400 per 10 grams at the end of 1999 to over ₹1.4 lakh in 2025—an average annual growth of 14.3%. Silver, which was priced at ₹8,100 per kilogram in late 1999, has climbed to just above ₹2.5 lakh, delivering an average annual return of 14.1%.

Equities Lag Behind
During the same period, India’s major stock indices—Nifty and Sensex—gave annual returns of 11.7% and 11.5%, respectively. If Sensex had matched silver’s performance, it would have been around 1.6 lakh points instead of 85,000, nearly double its current level. Similarly, Nifty would have needed to rise from 26,000 to approximately 48,000 points to match silver’s return.

Why Precious Metals Are in Demand
Experts cite several factors behind the strong performance of gold and silver. Vikram Dhawan of Nippon India Mutual Fund explains that gold has always been an essential component of diversified portfolios, with Gold ETFs providing a simple and secure investment avenue.

Volatility and Long-Term Value
While gold prices may experience short-term fluctuations, it remains crucial for portfolio stability. India’s gold demand is largely driven by jewelry, but it is also considered a safe store of value. Some estimates suggest that the total gold held in Indian households is roughly equivalent to the country’s GDP. India remains one of the world’s largest gold consumers.

Silver, traditionally used for coins, utensils, and jewelry in India, is seeing increased demand due to rising prices. Jewelers are now creating pieces that combine both gold and silver. Additionally, falling interest rates in the U.S. have made the dollar cheaper, boosting demand for metals priced in dollars.

Growing Industrial Demand for Silver
A report from The Silver Institute highlights that global political uncertainty and market volatility have further supported silver prices. Increasing industrial demand, particularly from the solar, electric vehicle (EV), and semiconductor sectors, is also driving silver prices higher. Supply, however, has not kept pace with rising demand, adding upward pressure on prices.

Conclusion
With consistent long-term growth, robust industrial demand, and strong investor confidence, gold and silver continue to outperform equities and other asset classes. In the last 25 years, gold has proven to be the most reliable wealth creator, leaving little competition in its wake.

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