Metals Vs Equities: How Gold, Silver, Platinum Have Beaten Nifty 50 In 2025 So Far

Commodities are stealing the spotlight this year, leaving equities well behind. While the Nifty has gained a modest 5.49% year-to-date, metals have delivered spectacular returns: platinum is up 80%, silver 66%, and gold 52%. The rally underscores a growing divergence between global commodities and Indian equity markets, as supply-demand dynamics and investment flows drive metals higher.

The benchmark equity index currently trades at 25,046.15, marking a modest increase from its 23,700 levels at the beginning of the year. However, the metals are in sharp contrast, with investors seemingly gaining confidence in their safe-haven appeal.

Here's how three of the most valuable metals have performed this year:

Platinum has been the standout performer among metals, rising from $924 a troy ounce on Jan. 1, 2025 to presently trading at $1,660.

According to the World Platinum Investment Council, the global market is set for an 8,50,000-ounce deficit in 2025, following last year’s 9,68,000-ounce shortfall. Three consecutive years of deficits have slashed above-ground stocks by 46% since 2022, reaching the lowest level in over a decade.

Supply constraints are intensifying: mine output is expected to fall 6%, with South Africa, the world's largest producer, facing its weakest production in 25 years outside strike or shutdown periods. Recycling is improving but remains below pre-pandemic levels. Platinum's supply is also structurally price inelastic, with new mines taking nearly a decade to come online.

On the demand side, automotive use remains steady, jewellery demand in China and India is projected to rise 11%, and investment demand is climbing through bar and coin purchases and ETF inflows. Platinum's deep discount to gold — roughly 40% cheaper than 18-carat gold — is driving both consumer and investor interest. In India, PGI reports a 15% rise in platinum jewellery sales in Q1, with demand spreading beyond metros to smaller towns, especially among younger buyers. Globally, demand is firm in China, Japan, the US, and the Middle East.

Gold has benefited from expectations of US Federal Reserve rate cuts, with markets pricing in 25 basis-point cuts in both this month and December. Historically, such monetary easing supports non-yielding assets like gold. Investors are monitoring Fed minutes, Chair Jerome Powell's speeches, and employment data to gauge sentiment, adding to gold's momentum despite the modest Nifty gains.

The spot price of gold currently stands at $4,045.94 an ounce, marking an increase of about $1,500 from its early January levels. In India, gold is trading at Rs 1,21,814 per 10 grams in the spot market, after hitting a record high of Rs 1.24 lakh on Tuesday.

Silver, often dubbed the "devil's metal," is also up 66% YTD, combining safe-haven appeal with strong industrial demand. Axis Mutual Fund expects silver to remain firm, driven by consumption in electronics and the rapidly growing EV and solar energy sectors, persistent supply deficits, and a weak US dollar, which makes dollar-priced silver cheaper for foreign buyers. Short-term corrections are possible if the rupee strengthens or interest rates shift.

Silver's spot price currently trade at $49.45 an ounce, marking a steep increase from its early January levels, which were close to $30. In the domestic market, silver futures are trading at Rs 1.50 lakh per kilogram on the Multi Commodity Exchange of India.

The contrast between metals and the Nifty highlights the unique market dynamics of 2025. While Indian equities have delivered modest returns, global and domestic factors are pushing metals sharply higher. Platinum's supply squeeze, silver's industrial surge, and gold's sensitivity to Fed policy combine to make metals one of the year's most compelling investment stories.