Gold and Silver Outshine Nifty 50 Over the Past 5 Years

Gold and Silver have witnessed a rally in 2025, outperforming the Nifty 50 index over the past five years. A mix of macroeconomic, political, and market-specific factors is driving this strong uptrend. Gold futures on MCX have scaled all-time highs above Rs 1,23,450 per 10 grams on 08th October 2025, while silver futures touched a price of Rs 1,50,282 per kilogram on 08th October 2025. Silver is now on the verge of reclaiming USD 50/oz, a milestone last seen in 2011. The divergence from equities is driven by persistent global issues, anticipated US interest rate cuts, robust central bank buying, ETF inflows, and the appeal of precious metals as safe-haven assets.

Recent Performance of Gold and Silver

The Gold futures on MCX touched a record high due to heightened global uncertainties and expectations of monetary easing by major central banks. Silver futures joined the rally, trading at a record price, while nearing its 2011 all-time high. Silver's ascent has outpaced gold in 2025, with a year-to-date gain of about 72 percent, while gold has risen about 61 percent as per MCX Futures.

Globally, gold broke through the USD 4,000/oz threshold, setting new records in almost every major currency. Silver, too, is close to rising near the crucial $50/oz mark, last achieved during the 2011 commodity boom.

Gold vs Silver vs Nifty 50

Over the past five years, both gold and silver have delivered stronger returns than the Nifty 50 index. Gold delivered approximately 130 percent, Silver delivered around 165 percent, outperforming the Nifty’s 111 percent in the absolute terms for the past 5 years. In 2025 specifically, silver gained as much as 72 percent, gold rose 61 percent, while the Nifty posted a modest 6 percent year-to-date. This outperformance owes much to periods of economic turmoil and global crises when investors shift funds into precious metals for safety. Gold and silver historically gained during economic stress, and those metals have performed during the pandemic, the US debt ceiling crisis, and phases of intense geopolitical conflict. Below, the table compares the returns of Gold, Silver, and Nifty 50.

Factors Fueling the Rally

1. US Interest Rate Cut Expectations

The expectation of interest rate cuts by the US Federal Reserve has fuelled buying in both metals. With the US central bank widely expected to cut rates twice by year-end, as per sources, negative real rates have made gold and silver highly attractive, reducing the opportunity cost of holding these assets.

2. Geopolitical and Economic Uncertainty

Persistent global instability, including political unrest in various regions and the prolonged US government shutdown, has reinforced investors urge to seek safe-haven assets. Major crises typically boost fund flows into metals, causing spikes in their prices.

3. Central Bank Purchases

Central banks have taken advantage of uncertain times to accumulate gold, strengthening the price trend. Various central banks have been accumulating Gold due to economic uncertainties, diversifying from the USD.

4. ETF Inflows and Speculative Buying

Heavy inflows into gold and silver-backed exchange-traded funds (ETFs) and significant capital allocations by global investors have added fuel to the rally. The fear of missing out (FOMO) effect might have resulted in latecomers entering the market at high levels, further fueling the uptrend.

5. Investment Demand and Market Sentiment

Investor sentiment toward metals has drastically improved, as highlighted by record ETF inflows and sustained buying in futures markets. Gold and silver maintain their role as hedges against inflation, currency devaluation, and macro volatility, making them preferred picks amid unpredictability.

Outlook 2026 and Beyond

Experts see few catalysts for a strong correction in precious metal prices in the near future due to the huge rally. However, given the ongoing global uncertainties, persistent monetary accommodation, stable or increased investor demand, and supply-side tightness, gold and silver will be in focus. Some Analysts forecast even pointing gold to reach the USD 5,000/oz mark. Accordingly, Silver can perform based on the Gold to Silver Ratio differences.

In short, the silver and gold’s extraordinary performance and outperformance versus Nifty 50 remain anchored to their dual nature as investment and safe-haven assets. Macro and market drivers, together with supply dynamics and global investment flows, suggest their bullish momentum may continue in the medium term.