Gold and Silver Prices Soar

December 29, 2025

Abhishek Vij

2025 is drawing to a close, and the new year is approaching. One major economic news story of the new year is the record-breaking surge in the profit margins of gold and silver in the Indian market. While stocks and mutual funds have faltered, with returns averaging only 9 to 12 percent, and despite a general market slowdown and declining exports, gold prices have risen by 81 percent this year. Silver, traditionally considered secondary to gold, has also performed exceptionally well. This year, silver has yielded a return of 165 percent, surpassing gold. The price of silver saw a massive jump of Rs13,117 per kilogram, reaching a total of Rs 2.32 lakh per kilogram. Previously, Indian households carefully hoarded gold as a form of financial security, but now the world seems to be going crazy for gold. Governments of various countries, including India, are also actively involved in gold purchases. Meanwhile, the Indian rupee is losing its luster in the foreign exchange market.

It was once thought that the rupee reaching 70 against the dollar would be a record; today, it stands at 88-90 rupees per dollar. Gold prices have been steadily increasing for the past five years. On December 31, 2021, gold was priced at Rs48,083 per ten grams. On December 31, 2022, the price was Rs54,867, on December 31, 2023, it was Rs63,247, and on December 31, 2024, it was Rs76,162. However, by the end of this year, gold prices have more than doubled. As of this writing, the market rate is Rs1,37,956.The increase in prices this year is greater than the combined increase over the previous four years.

The reasons are a feeling of economic insecurity, rising unemployment, exorbitant prices demanded for services, and the tariff war initiated by Mr. Trump, which has devalued the currencies of developing countries. Now, governments are buying gold for stability, and so are ordinary people. Experts predict that it wouldn’t be surprising if gold reaches Rs300,000 per ten grams in the next two to three years. The craze for gold has always been strong in India because India’s own gold mines only produce about 15 percent of the demand. We import 85 percent of our gold.This is why gold prices rise, and along with it, our trade deficit increases.

The demand for silver has also surged. On December 31, 2021, the price of silver was Rs61,200 per kilogram; by December 31, 2024, it had reached Rs 86,017. But this year, the price increase has broken all records. Today, the price of silver is Rs 228,107 per kilogram, representing a 165 percent return.The reason for the increase in silver prices is that, amidst economic progress, silver is now being used for industrial purposes. We have very limited domestic supply; silver also has to be imported from abroad. Wealthy people are already investing in it for savings, but industries are also using silver in solar panels, electronics, the auto industry, electric vehicles, and pharmaceuticals. This has caused silver prices to skyrocket. However, due to the use of copper instead of silver in some products, experts believe that silver prices will fall after two or three years.