Mumbai, Dec 25 (NationPress) A year characterized by significant global unpredictability has seen precious metals yield remarkable returns for investors, with silver emerging as an unexpected frontrunner. Silver prices skyrocketed by over 137%, exceeding the gains of gold, which itself experienced a robust increase of approximately 68% this year.

Amidst the volatility of equity markets, both metals have solidified their status as favored safe investment alternatives, with silver distinctly outpacing all conventional assets.

The impressive performance of gold was bolstered by geopolitical tensions, rising inflation worries, and anticipations of interest rate cuts from the US Federal Reserve.

A key factor fueling the ascent of gold has been consistent purchasing from global central banks. For three years running — 2022, 2023, and 2024 — these banks have acquired over 1,000 tonnes of gold annually.

In tandem, worldwide investors have maintained their investments through gold ETFs, utilizing them as a reliable refuge for their funds.

Major global financial institutions have adopted increasingly optimistic views on gold's future. Goldman Sachs has elevated its 2026 year-end target for gold prices to $4,900 per ounce, citing strong demand from central banks and inflows into ETFs.

Deutsche Bank has also revised its forecast, estimating gold prices at $4,450 per ounce by 2026.

However, the surge in silver has been driven by factors beyond mere safe-haven appeal. Strong industrial demand has played a vital role.

Increasing consumption from sectors like solar energy, electric vehicles, and electronics has significantly boosted silver usage.

Concurrently, supply constraints have tightened the market, driving prices up sharply.

This dual function — serving as both a precious metal and an industrial component — has enabled silver to provide returns exceeding those of gold by more than double in 2025.

Looking forward, analysts believe the upward trend in silver may persist into 2026.

Market experts suggest that robust industrial demand, restricted supply, and favorable global trends could facilitate a further rise of 15% to 20% in silver prices next year.

Some analysts predict that in the first half of 2026, silver could yield an additional 20% to 25% return from current levels, although they advise a cautious investment approach, especially in the face of potential short-term corrections.

Gold's prospects also appear optimistic for 2026. Continued acquisitions by central banks, possible US rate reductions, and ongoing geopolitical threats are anticipated to support prices.

Experts indicate that monitoring central bank activities — whether they continue purchasing, maintain reserves, or commence selling — will be crucial, as their actions often foreshadow future price movements.

“With uncertainty continuing to shape the global economic environment, precious metals are likely to remain integral to investor portfolios, providing a blend of safety and growth potential,” experts have stated.

Meanwhile, both metals reached new all-time highs on the MCX on Wednesday morning, buoyed by a weak US dollar and expectations of additional interest rate cuts by the US Federal Reserve.

Gold futures for February increased by 0.42% to achieve an unprecedented high of Rs 1,38,469 per 10 grams. Silver futures for March climbed nearly 2% to reach a new record of Rs 2,23,742 per kg.

In the global arena, gold prices surpassed the $4,500 per ounce threshold for the first time. This surge was driven by strong demand for safe-haven assets as investors anticipate further interest rate cuts by the US Federal Reserve in the coming year.