Page 34 - Bullion World Volume 03 Issue 07 July 2022
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Bullion World | Volume 5 | Issue 09 | September 2025
B ullion W orld | V olume 5 | I ssue 09 | S ep t ember 2025
Bullion Boom: The Case
for Gold and Silver in
Uncertain Times
Dr. Renisha Chainani, Head-Research, Augmont
Gold has regained its shine among
investors, emerging as one of the
best-performing assets in recent
years. In 2024, it surged nearly
27%, and by August 2025, it had
already risen another 35%. Silver has
outperformed gold by climbing more
than 40% in the first eight months
of 2025. Despite these strong gains,
history suggests that bullish phases
in precious metals often last for
years. Their enduring appeal lies in
diversification benefits, safe-haven
status, inflation protection, and
growing structural demand from
both central banks and investors.
Dr. Renisha Chainani
Top 5 Reasons Behind the 2025 3. Geopolitical & Policy Uncertainty
Bullion Rally From tariff threats to regional conflicts, rising risks
are driving investors toward safe-haven assets like
1. Monetary Policy & Rate Cuts gold and silver.
Weak U.S. employment data has fuelled 4. Inflation & Fiscal Worries
expectations of Federal Reserve rate cuts. Lower Stubborn inflation, large U.S. fiscal deficits,
interest rates reduce the opportunity cost of and debt-to-GDP ratios exceeding 120% are
holding gold, while a softer U.S. dollar further sparking concerns of monetary debasement.
boosts demand. This strengthens the case for long-term gold
2. Central Bank Buying & Investment Inflows allocations.
Countries such as China, India, Turkey, and 5. Silver’s Industrial Demand
Russia have accelerated gold purchases to reduce Silver’s surge is not purely investor-driven;
dependence on the dollar. Alongside, investor industrial usage in solar panels, EVs, and
inflows into Gold ETFs are amplifying upward electronics is providing fundamental support.
momentum. Persistent supply deficits have helped silver touch
repeated record highs.
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