Commodities steal the show in 2025: Silver, gold, copper gallop far ahead of equities
Investors will remember 2025 for the spectacular returns generated by silver. In the second position came gold, and though it was significantly behind the two precious metals, copper generated returns not seen since 2009. Bank Nifty one of the better performing equity indices was far behind all of the commodities.
Kolkata: 2025 marked a year of triumph for commodities for investors. While stock market indices advanced only a meagre 10%, silver prices rocketed by 130-150%, gold surged by 70-80% and copper, not a precious metal, also jumped by 40%. In equities, bank Nifty outperformed the market. Calculations show that if an investor put Rs 15,000 in each asset on January 1, 2025, the portfolio would have swelled to about Rs 1 lakh by the end of December.
Silver on top
Silver exhibited a strong silver lining n 2025. It emerged as the star commodity of the year, enjoying strong tailwinds of industrial demand, a favourable demand-supply situation and safe-haven demand from investors. The prices of silver shot through the roof and recorded gains of about 130-150%. The price of silver reached about Rs 2,32,000 per kg.
If one invested only Rs 15,000 in silver, it would have zoomed to about Rs 34,500 now. It is the most sprightly asset class not only among commodities but among all asset classes. Some experts have even said that this could be the beginning of a spectacular bull run. Among them is Vedanta chairman Anil Agarwal who thinks the metal is both precious and has functional value. Silver is emerging from the shadow of gold and is entering a long-term structural phase, believes Agarwal.
Gold and its traditional safety
Gold prices surged by 70-80% and is still grabbing headlines despite the record breaking run by silver. Global uncertainty, aggressive purchase by various central banks of the world, falling interest rates have pushed the prices of gold up and in the case of India add to its the decline of the value of the rupee against the US Dollar. The price of the yellow metal crossed Rs 1,38,000 per 10 grams. If one put Rs 15,000 in gold at the beginning of the year, its value would have swelled to Rs 25,500.
The glitter of copper
In this calendar year, copper prices jumped by about 40%. Prices have risen due to supply constraints and increased demand from the power and infrastructure sectors. A sharp rally in December took prices beyond $12,000 per ton. An investment of Rs 15,000 in copper grew by about 35% to reach Rs 20,250. It has been labelled as the biggest rise since 2009.
Bank Nifty outperformed the stock market
This year the Indian stock market lagged far behind commodities in terms of returns. The Nifty 50 rose by only 10% but Bank Nifty gaining more than 15%. In other words, it means that an investment f Rs 15,000 at the beginning of the year would have increased to approximately Rs 17,250.
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