After huge surge in 2025, gold, silver can rally more

For investors of gold and silver, 2025 has been the best year after record returns of 1979.

- RAJESH BHAYANI

While the precious metals have seen some pullback this week, led by some profit-booking, experts suggest that gold and silver could see their rallies continue in 2026.The returns in 2025 have been the highest after 1979 in US dollar terms, and the highest in rupee terms post-1996, since when data is available. In the last five decades, 1979 and 2011 saw the sharpest rally in gold and silver, followed by a steep reversal.

In 2025, gold returned nearly 65 percent in dollar terms and 76.7 per cent in rupee terms. However, the return from silver was almost 150 per cent in the international market, and about 170 per cent in India. It is worth noting that in 1979, a year when Hunt Brothers speculated heavily in silver, international silver prices went up 434.79 per cent, and gold was up 126.55 per cent.

However, the last two days (Monday and Tuesday) have seen wide fluctuations in both metals, especially silver, indicating a volatile trend in the near term. Experts advise caution, as both metals are overbought and due for a pullback. The prices of gold and silver should be used to add to investments, they add.