Gold, silver, or copper: Which metal should investors choose in 2026?
After a blockbuster 2025, metals are firmly back in the spotlight as investors reassess strategies for the year ahead. Gold and silver delivered exceptional returns, while copper joined the rally on supply and demand pressures. As 2026 approaches, the key question is which metal offers the best balance of stability, growth and opportunity.
- Dec 24, 2025,
- Updated Dec 24, 2025 5:01 PM IST
The year 2025 etched itself into history as a golden—and silvery—era for metals. What began as an early-year rally turned into a relentless bull run, delivering returns that left equities far behind. On India’s MCX, gold surged nearly 78%, rising from Rs 75,233 on December 20, 2024, to Rs 1,33,589 on December 22, 2025. Silver outshone all, posting a staggering 144% gain to Rs 2,08,062, while the benchmark Nifty 50 managed a comparatively modest rise of just over 10%. Against a backdrop of global uncertainty, investors increasingly reoriented portfolios toward metals.
What fuelled the surge?
Central banks played a pivotal role by steadily accumulating gold as a core reserve asset. At the same time, silver benefited from rising industrial demand, particularly in electronics, renewable energy and manufacturing. Heightened geopolitical tensions, trade frictions and US tariff uncertainty further amplified demand for safe-haven assets, pushing prices to record levels.
“Gold has reaffirmed its role as a strategic store of value for central banks through 2025,” said Yash Sedani, Assistant Vice President, Investment Strategy at 1 Finance. He noted that many countries have continued to diversify foreign exchange reserves away from the US dollar and towards gold, driven by concerns around currency concentration risk, sanctions exposure and long-term monetary stability. “Central bank gold purchases have therefore remained a structural source of demand rather than a cyclical one,” he added.
Sedani also pointed to persistent geopolitical conflicts and an easing global interest-rate cycle as key supports. Lower rates, he said, reduce the opportunity cost of holding non-yielding assets such as gold, reinforcing its appeal during periods of uncertainty.
Outlook for 2026
As 2026 begins, both gold and silver carry strong tailwinds, though gains may moderate after the extraordinary rally of 2025. Gold is expected to remain resilient, supported by prospects of further rate cuts, continued central bank buying, ETF inflows, a softer US dollar and lingering geopolitical risks. Price expectations broadly range between $4,300 and $5,500 per ounce, with bullish scenarios extending toward $4,900–$5,200.
Silver, with its higher volatility, may continue to outperform gold on a percentage basis. Tight supply conditions and expanding clean-energy demand could drive prices into the $55–$85 per ounce range, with optimistic projections clustering toward $75–$85. Any near-term corrections are widely viewed as buying opportunities rather than trend reversals.
Looking ahead, Sedani said that with geopolitical risks elevated and global monetary policy likely to remain accommodative, the fundamental drivers for gold remain intact. “While short-term price volatility may occur, the broader momentum for gold as a reserve asset and portfolio hedge is expected to continue,” he said. He added that silver’s dual role—as both a precious metal and an industrial commodity—gives it an added edge, with demand tied to electronics, solar energy and emerging clean-energy technologies.
Copper joins the rally
Beyond precious metals, copper has also grabbed investor attention. Prices surged to fresh record highs this week, driven by supply disruptions, trade uncertainty and strong structural demand. On the London Metal Exchange, three-month copper futures climbed to around $12,040 a tonne, taking year-to-date gains close to 40%, the strongest annual performance since 2009. On the MCX, January copper futures hit a lifetime high of Rs1,181.90 per kg, while US Comex copper rose nearly 49% for the year.
Tight supply has been a key driver, with disruptions at major mines and fears of US tariffs distorting global trade flows. While some analysts see copper rising further in 2026 as long-term deficits deepen, others caution that parts of the rally reflect tariff hedging and the broader EV–AI–energy transition narrative, leaving the market tight but potentially fragile.
Gold or silver: How to choose?
Gold continues to serve as a portfolio anchor, offering stability and long-term protection. Systematic investment plans can help average costs through volatility. Silver, meanwhile, offers higher upside potential but with sharper swings, making staggered accumulation a more prudent approach.
Sedani noted that industrial demand for silver is rising alongside renewable energy and electrification trends, while supply remains uncertain due to geological and regulatory constraints. As a result, silver often amplifies gold’s moves during bullish cycles. For 2026, gold is likely to remain a core defensive asset, while silver offers higher-beta exposure linked to both precious-metal dynamics and industrial growth themes.
The year 2025 etched itself into history as a golden—and silvery—era for metals. What began as an early-year rally turned into a relentless bull run, delivering returns that left equities far behind. On India’s MCX, gold surged nearly 78%, rising from Rs 75,233 on December 20, 2024, to Rs 1,33,589 on December 22, 2025. Silver outshone all, posting a staggering 144% gain to Rs 2,08,062, while the benchmark Nifty 50 managed a comparatively modest rise of just over 10%. Against a backdrop of global uncertainty, investors increasingly reoriented portfolios toward metals.
What fuelled the surge?
Central banks played a pivotal role by steadily accumulating gold as a core reserve asset. At the same time, silver benefited from rising industrial demand, particularly in electronics, renewable energy and manufacturing. Heightened geopolitical tensions, trade frictions and US tariff uncertainty further amplified demand for safe-haven assets, pushing prices to record levels.
“Gold has reaffirmed its role as a strategic store of value for central banks through 2025,” said Yash Sedani, Assistant Vice President, Investment Strategy at 1 Finance. He noted that many countries have continued to diversify foreign exchange reserves away from the US dollar and towards gold, driven by concerns around currency concentration risk, sanctions exposure and long-term monetary stability. “Central bank gold purchases have therefore remained a structural source of demand rather than a cyclical one,” he added.
Sedani also pointed to persistent geopolitical conflicts and an easing global interest-rate cycle as key supports. Lower rates, he said, reduce the opportunity cost of holding non-yielding assets such as gold, reinforcing its appeal during periods of uncertainty.
Outlook for 2026
As 2026 begins, both gold and silver carry strong tailwinds, though gains may moderate after the extraordinary rally of 2025. Gold is expected to remain resilient, supported by prospects of further rate cuts, continued central bank buying, ETF inflows, a softer US dollar and lingering geopolitical risks. Price expectations broadly range between $4,300 and $5,500 per ounce, with bullish scenarios extending toward $4,900–$5,200.
Silver, with its higher volatility, may continue to outperform gold on a percentage basis. Tight supply conditions and expanding clean-energy demand could drive prices into the $55–$85 per ounce range, with optimistic projections clustering toward $75–$85. Any near-term corrections are widely viewed as buying opportunities rather than trend reversals.
Looking ahead, Sedani said that with geopolitical risks elevated and global monetary policy likely to remain accommodative, the fundamental drivers for gold remain intact. “While short-term price volatility may occur, the broader momentum for gold as a reserve asset and portfolio hedge is expected to continue,” he said. He added that silver’s dual role—as both a precious metal and an industrial commodity—gives it an added edge, with demand tied to electronics, solar energy and emerging clean-energy technologies.
Copper joins the rally
Beyond precious metals, copper has also grabbed investor attention. Prices surged to fresh record highs this week, driven by supply disruptions, trade uncertainty and strong structural demand. On the London Metal Exchange, three-month copper futures climbed to around $12,040 a tonne, taking year-to-date gains close to 40%, the strongest annual performance since 2009. On the MCX, January copper futures hit a lifetime high of Rs1,181.90 per kg, while US Comex copper rose nearly 49% for the year.
Tight supply has been a key driver, with disruptions at major mines and fears of US tariffs distorting global trade flows. While some analysts see copper rising further in 2026 as long-term deficits deepen, others caution that parts of the rally reflect tariff hedging and the broader EV–AI–energy transition narrative, leaving the market tight but potentially fragile.
Gold or silver: How to choose?
Gold continues to serve as a portfolio anchor, offering stability and long-term protection. Systematic investment plans can help average costs through volatility. Silver, meanwhile, offers higher upside potential but with sharper swings, making staggered accumulation a more prudent approach.
Sedani noted that industrial demand for silver is rising alongside renewable energy and electrification trends, while supply remains uncertain due to geological and regulatory constraints. As a result, silver often amplifies gold’s moves during bullish cycles. For 2026, gold is likely to remain a core defensive asset, while silver offers higher-beta exposure linked to both precious-metal dynamics and industrial growth themes.