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With Gold and Silver hitting all-time high levels, the ETFs based on these commodities have offered return up to 44% in the current calendar year so far.
Gold based ETFs have offered an average return of 40.10% in the current calendar year so far and delivered returns up to 41% in the same time period. UTI Gold ETF gave the highest return of around 41.07% in 2025 so far, followed by Aditya Birla SL Gold ETF which gave 40.48% return in the same time period.
The counterparts – silver based ETFs have offered an average return of around 42.67% in the current calendar year so far and posted return up to 43.57% in the same time period. HDFC Silver ETF FoF has offered the highest return of around 43.57% in the current calendar year this far, followed by UTI Silver ETF which gave 43.36% return in the same time horizon.
Tata Silver ETF delivered the lowest return of around 41.20% in the current calendar year so far.
According to a note by Axis Mutual Fund, gold and silver have delivered strong rallies this year, with both metals reflecting their resilience and relevance as investors seek protection and stability in a volatile global environment.
The note further stated that Gold’s rise is being driven by a combination of factors including a weaker US dollar, expectations of interest rate cuts, political pressure on the Federal Reserve, and heightened geopolitical uncertainties that reinforce its position as a safe haven.
On the other hand, Silver is benefiting from robust industrial demand with applications in solar panels, electronics, semiconductors, and electric vehicles, giving it a unique dual role as both a safe-haven asset and a driver of long-term growth opportunities.
A market expert attributed this rally to geopolitical tensions and tariff-related uncertainties, and suggested that investors allocate 15–20% of their diversified portfolios to these precious metals.
“Precious metals, especially gold, perform very well in uncertain times. Due to geo political tensions and tariff related uncertainty, Gold and Silver prices have reached record highs. Silver is at a decade high due to strong industrial demand also. Investors should allocate money in Gold & Silver as an asset allocation tool and hedge against uncertainty. In my opinion 15-20% of a diversified portfolio should be in Gold and silver,” Pallav Agarwal, Certified Financial Planner, Bhava Services LLP shared with ETMutualFunds.
Demand for gold remains well supported globally as central banks continue to diversify reserves, ETFs attract strong inflows, and investors increase purchases of bars and coins, though jewellery consumption has moderated in price-sensitive markets, Axis Mutual Fund said in the note.
The fund house also said that the silver-backed ETFs/ETPs have seen record inflows – about 95 million ounces of net additions in the first half of 2025 (January-June). This H1 inflow has already exceeded the total silver ETF inflows of the entire year 2024. As a result, by mid-2025, global silver ETF holdings hit – 1.13 billion ounces, valued at over $40 billion – a record high.
The assets under management (AUM) of Gold ETF went up by 4% from Rs 64,777 crore in June to Rs 67,634 crore in July. On a yearly basis, the AUM has surged by nearly 96% from Rs 34,455 crore in July 2024.
In the last one year, the gold based ETFs have gained up to 50% with offering an average return of 47.43% in the same time period. On the other hand, silver ETFs have offered upto 47.63% return in the last one year and gave an average return of 46.88% in the same time period.
Axis Mutual Fund expects gold prices to be in the range of 3400$ to 3600$/oz this year and the prices are unlikely to see steep correction unless the US government stops criticizing the Federal Reserve or its members and there’s a big breakthrough in solving global trade and tariff problems. It further expects Silver to remain in range of 40$-42$/oz in this year.
Another analyst comments on the six to 12 month outlook for gold and silver and says that global factors like geopolitical events, US FED monetary policy and tariff related events will decide the future price movements of these precious metals.
“Global factors like geopolitical events, US FED monetary policy and tariff related events will decide the future price movements of these precious metals and if the current uncertainty subsides, the prices will cool down a bit else they will stay firm at elevated levels,” said Agarwal.
Gold funds are used for portfolio diversification. If you have a large portfolio, you can earmark a small percentage of the total portfolio (advisors say around 10%) to invest in gold. If you are starting out or you have a very small portfolio, you can give it a miss. Investors should remember that these funds won’t offer you greater returns year after year. They are supposed to offer you diversification and add stability to your portfolio.
Gold ETFs are exchange-traded funds that track the price of physical gold. Each unit of a Gold ETF is backed by a specific quantity of gold, usually equivalent to one gram. They are listed on stock exchanges, and you need a demat and trading account to buy and sell them.
One should always consider risk appetite, investment horizon, and goals before making any investment decisions.
