Gold and silver prices are hitting record highs almost every day. In India, gold is trading close to Rs 1.3 lakh per 10 grams, while silver has already crossed Rs 2 lakh per kg in several cities. The surge in precious metals comes even as global equity markets continue to rally, marking an unusual phase where safe-haven assets and risk assets are rising together.
According to a recent post by The Kobeissi Letter, a global capital market analysis firm, gold and silver have outperformed the S&P 500 by more than four times in 2025, despite the US benchmark index recording one of its strongest bull runs in recent years. It suggests that such simultaneous gains in metals and equities indicate a deeper erosion of confidence in fiat currencies.
“What are gold and silver really telling us? When safe havens are rallying with risky assets it tells you one thing: confidence in fiat currencies is eroding. The market is pricing in record levels of AI CapEx and what will inevitably become an AI “war” between the US and China,” The Kobeissi Letter said in a social media post.
The firm warned that while factors like deficit spending and rate cuts during stagflation have been key drivers, the shift in sentiment is also being shaped by expectations of record spending on artificial intelligence. Kobeissi noted that markets are already pricing in what could become an “AI war” between the United States and China, pushing both countries to print more money and widen fiscal deficits in a bid to dominate the AI revolution.
In domestic markets, gold continues to climb ahead of the festive season, with 24-karat gold averaging around ₹1,25,000-₹1,30,000 per 10 grams in major cities such as Delhi, Mumbai and Chennai. Silver prices have breached the ₹2 lakh per kg mark in parts of southern and western India, supported by industrial demand and investor buying.
On the international front, gold is trading above US $4,000 per ounce, while silver recently touched US $50 per ounce, both marking fresh records for 2025. Analysts say silver’s rise has been sharper than gold’s, driven by industrial use in renewable energy and semiconductor manufacturing.
The Kobeissi Letter’s note underscores that the rally in precious metals is not just a reflection of inflation fears but a broader shift in market psychology. With major economies running high fiscal deficits and central banks preparing for possible rate cuts, investors are moving capital into tangible assets that hold intrinsic value.
The agency described the trend as “a signal that confidence in fiat currencies is collapsing,” suggesting that the ongoing rally in gold and silver is part of a structural realignment in how markets perceive money and value.
While no immediate reversal is visible in the current trend, the Kobeissi analysis frames gold and silver’s surge as a warning sign.
Meanwhile, a recent statement by American investor Anthony Pompliano, Founder and CEO of Professional Capital Management, has sparked debate among investors and gold enthusiasts. Pompliano described gold as a “disastrous investment,” highlighting its long-term performance relative to cryptocurrencies. He noted that over the past five years, gold has lost roughly 84% of its purchasing power compared with Bitcoin, which he referred to as the benchmark for “sound money.”
Pompliano’s analysis emphasized that, while gold has remained stable in U.S. dollar terms, its value has significantly declined when measured in Bitcoin. According to his data, one Bitcoin now buys around 16 times more gold than it did in 2020.
The remarks quickly went viral, drawing both criticism and support. Critics argued that the comments overlooked gold’s traditional role in preserving wealth during periods of economic uncertainty, geopolitical tensions, and currency fluctuations. They pointed out that gold remains a stable, liquid asset that can act as a hedge against inflation, even if it does not deliver rapid gains.
Some investors agreed with Pompliano’s view, suggesting that gold’s utility in today’s fast-moving financial markets is limited. Others countered that comparing gold solely to Bitcoin is short-sighted, noting that different assets serve different purposes. Social media users highlighted that a diversified approach, including both gold and cryptocurrencies, can balance stability and growth, with some emphasizing gold’s value during crises when other financial systems may fail.
