Precious metals were 2025’s strongest asset class by a wide margin. Gold rallied more than 65% in the past 12 months, marking a third consecutive year of gains. Silver surged even more sharply, climbing more than 125%. Platinum also posted triple-digit gains, while palladium soared more than 90%. The last time precious metals went on this kind of a tear was in the late 1970s, when the oil crisis pushed inflation into double-digit territory for several years.
An uncomfortable echo of the 1970s
Today’s environment is clearly different from half a century ago. Inflation has been brought back under control after its post-pandemic spike, oil prices are falling, and economies are growing, albeit only slightly in some cases. Yet if precious metals act as an early warning signal, the resemblance to the end of the 1970s is hard to ignore.
Gold, silver and platinum futures, monthly chart, 1979-present
Source: TradingView, 18 December 2025 Demand for physical gold and silver remains strong. Central banks are steadily adding to their reserves, while retail investors are increasing their exposure through physically backed exchange-traded funds (ETFs). What is striking is that both institutional and individual investors are buying at the same time, seemingly unfazed by record prices.
