Get ready for a golden revolution—because the price of gold is soaring to heights we’ve rarely seen, and it’s all thanks to Asia’s insatiable appetite. But here’s where it gets controversial: Could gold really hit a staggering $4,500 per ounce? A recent report by Motilal Oswal Financial Services Ltd (MOFSL) says it’s not just possible—it’s probable. Let’s break it down in a way that even beginners can grasp.
Gold prices are on an unprecedented climb, and the numbers are jaw-dropping. In 2025 alone, gold has surged over 50%, smashing through the $4,000 per ounce barrier and setting more than 35 record highs. What’s driving this? A perfect storm of global uncertainties, expectations of U.S. Federal Reserve rate cuts, and central banks stockpiling gold like it’s going out of style. And this is the part most people miss: It’s not just about economic fears—it’s also about strategic diversification. Central banks are reshaping the bullion market by shifting their reserves into gold, aligning institutional demand with long-term value creation.
Asia is at the heart of this shift. In India, gold prices recently hit Rs 1.20 lakh per 10 grams, with predictions it could climb to Rs 1.35 lakh in the long term. This isn’t just about jewelry—it’s about cultural preferences, rising disposable incomes, and the upcoming Diwali festival, which historically boosts gold demand. But here’s a thought-provoking question: With India importing 300 tonnes of gold by September 2025, is this demand sustainable, or are we headed for a bubble?
Meanwhile, silver is stealing the spotlight, outperforming gold with a 60% gain year-to-date. Driven by industrial demand in sectors like solar energy, electric vehicles, and AI hardware, silver is expected to hit $75 per ounce, with domestic prices rising to Rs 2.3 lakh per kilogram. The gold-silver ratio has narrowed from 110 to 81-82, signaling silver’s growing strength. But here’s where opinions divide: Is silver’s rally a temporary surge, or is it the new gold?
Supply constraints are adding fuel to the fire. Stagnant global mine output, declining ore grades, and stricter environmental regulations are limiting gold and silver availability. At the same time, safe-haven demand is surging due to U.S. fiscal concerns and softening labor data. And this is the part that sparks debate: Are these supply issues temporary, or are we facing a long-term shortage?
MOFSL remains bullish on both metals in the long term, despite potential short-term corrections. But what do you think? Is gold’s rally a golden opportunity, or a risky bet? And is silver the smarter investment right now? Let’s hear your thoughts in the comments—because when it comes to precious metals, the only thing certain is uncertainty. (Disclaimer: The views and recommendations expressed by experts are their own and do not represent the opinions of The Times of India.)
