Between Akshaya Tritiya 2025 and 2026, both gold and silver Exchange Traded Funds (ETFs) demonstrated robust performance, but silver emerged as the clear leader with substantially higher returns.
Ravi Singh, Chief Research Officer at Mastertrust, highlighted the striking difference. Gold ETFs saw returns in the range of 50-60%, a solid performance attributed to global uncertainties, inflation concerns, and consistent central bank buying. Gold maintained its reputation as a stable asset during this period.
Silver's Surge: Industrial Demand Fuels 100%+ Returns
Silver, however, experienced a much sharper appreciation. Silver ETFs delivered impressive returns of approximately 100-115%. This surge was not solely driven by investor demand but significantly bolstered by strong industrial usage in key sectors such as solar panels, electric vehicles, and electronics, adding considerable momentum to its prices.
Singh illustrated the difference with a hypothetical investment: an initial Rs 1 lakh in gold ETFs would have grown to around Rs 1.5-1.6 lakh. The same investment in silver ETFs, conversely, could have reached nearly Rs 2-2.15 lakh. While gold offers steadier, lower-volatility growth, silver tends to be more aggressive, rising faster but also carrying higher risk.
Central Bank Buying and Geopolitical Catalysts for Gold
InCred Money separately noted that gold's rally, including a 90% increase between March 2025 and March 2026, was influenced by several factors. Central banks globally have been aggressively purchasing over 1,000 tonnes of gold annually since 2022, more than double the pace of the preceding decade. This trend intensified after the weaponization of dollar-denominated assets in 2022, prompting nations like India to repatriate gold reserves.
Furthermore, China made a significant policy decision in 2025, mandating its ten largest insurance companies to allocate up to 1% of their total assets into physical gold. This move is projected to redirect 630-750 tonnes of gold over three years, representing 15-20% of all newly mined gold annually. Persistent geopolitical tensions and increased retail buying also contributed to gold's strong performance.
InCred also advised that sharp corrections in gold prices should be viewed as entry opportunities for long-term investors, rather than signals to exit the market.