Gold vs Silver vs Sensex: Which is Better for Investing in 2025? Aamar Deo Singh of 

Angel One Explains

Mumbai, May 5, 2025 — As the Indian economy embarks on a post-election growth path and global uncertainties linger, investors are once again caught in the age-old debate—where should one invest in 2025: gold, silver, or equities like the Sensex? With inflationary pressures softening, central banks turning cautious, and market volatility hovering at moderate levels, asset allocation becomes more critical than ever.

To decode this complex dilemma, we spoke with Aamar Deo Singh, Senior Vice President at Angel One, whose years of market wisdom have guided countless retail investors. His insights provide much-needed clarity on how each asset class is likely to perform this year.

A Look Back: Performance Snapshot (2024)

While equities (Sensex) outperformed precious metals last year, gold held its ground as a safe haven, and silver saw mixed performance due to uneven industrial momentum.

Gold: A Safe Bet in Uncertain Times?

Gold has always been a classic hedge against inflation and geopolitical tensions. In 2025, while central banks are not as aggressive as before, geo-economic fragmentation and rate cut expectations globally are putting the yellow metal back in investor focus.

 Key Drivers for Gold in 2025

• Fed Policy & Interest Rates: A dovish pivot could lead to weaker dollar strength and boost gold prices.

• Geopolitical Risks: Ongoing instability in the Middle East, Ukraine, and trade tensions with China.

• Demand from Central Banks: Nations like China and Russia continue to accumulate gold as reserve assets.

• Indian Demand: Traditional demand remains robust, especially during the wedding season and festive cycles.

 Price Outlook

“Gold has room to grow further in 2025, but not without intermittent corrections. Investors should view it as a stabilizer, not a return-maximizer,” says Aamar Deo Singh.

Price Range Forecast: ₹64,000 to ₹71,000 per 10 grams

Silver: Industrial Metal with High Beta

Silver, often called “the poor man's gold,” comes with an entirely different set of dynamics. It’s both a precious metal and an industrial commodity. In 2025, with a pickup in electric vehicles (EV), solar energy expansion, and 5G infrastructure, silver's industrial demand is rising.

 Key Drivers for Silver in 2025

• EV & Solar Demand: India’s PLI schemes and global green energy investments are increasing silver consumption.

• Volatility Factor: Silver is more volatile than gold and tends to outperform during strong commodity bull runs.

• Speculative Interest: Traders often flock to silver due to its dual characteristics.

 Price Outlook

“Silver can surprise with its upside if industrial recovery sustains. But it's also the most speculative of the three,” Singh cautions.

Price Range Forecast: ₹74,000 to ₹88,000 per kg

Sensex: Equities Riding on Domestic Resilience

Despite global headwinds, the Indian equity market has been on a strong footing. The Sensex crossed 75,000 earlier this year and remains bullish, supported by strong corporate earnings, stable political environment, and resilient domestic consumption.

 Key Drivers for Sensex in 2025

• FII Inflows: Global funds see India as a growth story amidst slowing China and shrinking Eurozone.

• Make-in-India Momentum: Government capex and PLI schemes are boosting manufacturing and exports.

• Retail Participation: Record high Demat account openings and SIP inflows have deepened domestic market strength.

• Sectoral Rotation: IT, auto, capital goods, and banking are showing strong growth.

 Index Outlook

“Sensex can comfortably test the 80,000–82,000 zone in 2025, with occasional corrections. Long-term investors should stick to quality names,” Singh advises.

Target Range: 78,000 to 82,500 (End-2025)

Comparative Overview: Gold vs Silver vs Sensex

What Aamar Deo Singh Recommends

“A well-diversified portfolio is non-negotiable in 2025. If you are conservative, lean on gold. If aggressive, tilt toward equity. Silver should be a tactical play and not core.”

His Suggested Allocation (Conservative Investor):

• 40% Gold

• 10% Silver

• 50% Sensex-based Equity Funds

His Suggested Allocation (Aggressive Investor):

• 15% Gold

• 10% Silver

• 75% Equities (Direct or via Index/Mutual Funds)

Investment Vehicles for Each Asset Class

 For Gold:

• Sovereign Gold Bonds (SGBs)

• Gold ETFs

• Digital Gold

• Physical Gold (as last resort)

 For Silver:

• Silver ETFs (recently launched in India)

• Commodity Futures (for experienced investors)

• Physical silver (industrial usage)

 For Sensex:

• Index Funds (Sensex/Nifty)

• Bluechip Mutual Funds

• Direct Stock Investment (ICICI, HDFC Bank, Infosys, L&T, etc.)

Pros and Cons Summary

Final Thoughts: The Balanced Approach Wins

In 2025, there is no "one-size-fits-all" investment strategy. The global economy is undergoing a transition—from easy money to cautious optimism. This means both precious metals and equities have roles to play.

Gold continues to act as insurance, silver offers opportunistic gains, and equities like the Sensex remain the primary engine of portfolio growth. The wise investor, as always, will not pick one over the other—but blend the three into a customized, well-researched strategy.

Have You Aligned Your Portfolio for 2025?

As Aamar Deo Singh concludes,

“2025 belongs to those who balance safety with ambition. Don’t chase returns blindly; build discipline with diversification.”