According to Axis Mutual Fund report:
Gold prices have doubled in the past five years, reaching all-time highs. In 2024, total gold demand hit a record 4,974 tons, driven by central bank purchases exceeding 1,000 tons for the third consecutive year.
Silver prices rose 15% in 2024 and another 11% in early 2025. Strong demand from solar panels, electronics, and EV batteries, coupled with increasing investor interest, has driven imports to record levels.
The gold-silver ratio stands at 88.36, reflecting silver’s relative undervaluation. Silver remains more volatile than gold, often amplifying gold’s price movements in both directions, per the Axis Fund report.
Inflation fears, geopolitical tensions, and economic instability have fueled gold’s demand. The ongoing U.S.-China trade war and global conflicts continue to support high gold prices.
The U.S. budget resolution extending 2017 tax cuts could increase fiscal deficits, supporting higher gold prices. However, if the U.S. Federal Reserve maintains stable interest rates, it may slow down the gold rally, per the Axis Fund report.
If you want to zero in on gold investing, it can be done through various methods. For instance, one can opt for physical gold, like coins, bars, or jewellery. It offers tangible assets but requires secure storage. Gold ETFs (Exchange-Traded Funds) provide an easier, paper-based alternative, tracking gold prices without the hassle of storage. Sovereign Gold Bonds (SGBs), issued by governments, offer interest along with price appreciation. Gold mutual funds invest in gold-related assets and provide diversification. Digital gold allows small investments via fintech platforms. Lastly, gold mining stocks offer exposure to companies extracting gold but can be risky. Therefore, before investing, assess market trends, liquidity, and associated costs to align with financial goals.