Gold Vs Silver Price Outlook: Where Should Investors Place Their Bets In 2025 And Beyond?

Gold Vs Silver Price Outlook: The demand for bullions, particularly gold and silver has shattered all records in 2025. The prices of both bullions grew sharply, giving whopping returns to investors in comparison to other asset classes in such a short span.

Starting the year at just $28.92 per ounce, Silver has skyrocketed to over $46 per ounce by late September, giving a near 61 per cent. Gold has also followed a similar pattern this year. It has given a 44 per cent return.

Will the momentum in both bullions sustain in the long run?

Before seeing the price outlook of these bullions, understanding the factors driving the rallies is important.

Gold Price Outlook

Tata Mutual Fund, in its report has mentioned factors triggering the gold prices: 1) central banks across globe buying gold in the last 10 years, have almost doubled

in last 10 years, 2) US FED rate cut by 25 bps on September 17 sparked gold price rally, global uncertainty is fueling the “flight to safety”, strong investment demand, and rupee depreciation amplifying gold returns.

Tata Mutual Fund in its report noted that gold prices may consolidate around broad range of of $3,500-$4000/oz over the short term, as the world digests US tariff policy changes along with heightened geopolitical risks and elevated US growth concerns.

Investors may remain invested and look for accumulation on any decline in the prices triggered by short term cyclical factors, it recommends.

“We believe that the overall market environment is going to be favorable for a strategic allocation in Gold as a long-term investment in portfolio considering its hedge against inflation, Geopolitical uncertainty and currency depreciation,” it added.

As incremental flows coming to the gold and silver, Investors may consider to allocate Gold and Silver in 50 : 50 ratio as Silver too looks attractive and Gold as a strategic asset.

Silver Price Outlook

Industrial demand explosion, US Fed rate cut, 5 years of deficit in silver, rupee depreciation amplifying silver returns, and gold-silver ration are some of the factors driving the demand.

Tata Mutual Fund says they expect strong investment demand, large Silver supply deficit and Fed cuts may continue to support Silver prices over the medium to long term for three to five-year horizon.

It added that silver may outperform Gold in the medium term with favorable Gold/Silver ratio, recovery in developed economies, strong industrial demand especially from China, and global supply deficit projections.

“Silver is a developing growth story, and the trend is highly depended on broad recovery in industrial demand. Investors should be mindful of short-term volatility and macro headwinds,” Tata Mutual Fund concludes.