The Metal Matrix 2025: Why Gold Glitters, Silver Soars, Copper Reigns, and Nickel Falters

SYNOPSIS

The 2025 metals market is a tale of two cities. It’s a dramatic split where some metals are hitting all-time highs while others are being left far behind. We’re seeing a clear divide between ancient stores of value, metals critical for the future, and one industrial metal that's facing a classic supply surplus.

If you’re watching the tickers, here’s a simple breakdown of the four key players and why they are on such different paths.

The future of metals in 2025: Gold shines, silver climbs, copper dominates, while nickel struggles. Insights from IBS ICFAI Business School's "The Metal Matrix 2025" program.

Gold: Glittering in Uncertain Times

Gold is doing exactly what it’s supposed to do: act as a safety net. In a world with shaky economies and global tensions, investors and even governments want something solid.

Gold has gained over 60% since the start of the year. Domestically the metal hit an all-time high of ₹1,34,800 per 10 grams.

The biggest force driving the price is central banks Global central banks have been a primary driver, adding 166 metric tonnes to their reserves in the first half of 2025. They are diversifying away from the US dollar, and gold is their number one choice. This massive, steady buying puts a high floor under the price.

Investor appetite is also strong, with Gold ETFs seeing inflows of 397 tonnes in the first half of 2025, the highest level since 2020.

On top of that, everyone expects the U.S. Federal Reserve to start cutting interest rates. When rates fall, holding cash in a bank pays you less, making gold—which pays no interest—a much more attractive thing to own.

Gold’s scorching rally came to a halt when on Tuesday  ( 21^ST October) when Gold saw its biggest one-day drop in over 12 years, tumbling as much as 6.3% to $4,082.03 a troy ounce, after hitting all time high of $1,381.21 on Monday.

Silver: Soaring on Two Engines

Silver has been the breakout star of the year, in some cases rising even faster than gold. The metal crossed ₹1,70,000 per kilogram on exchanges, with physical market prices reportedly hitting ₹1,90,000 per kg. That’s because silver is firing on two powerful engines at once.

First, it’s a precious metal. It gets all the same benefits as gold from falling interest rates and safety-seeking investors.

But its second engine is its industrial power. Over 60% of all silver is now used in industry, and it is absolutely essential for the world’s biggest growth trends. You can't build solar panels, electric vehicles (EVs), or 5G and AI hardware without it.

The solar panel industry alone now consumes over 200 million ounces annually, while each EV requires 25 to 50 grams of silver.

This demand is so high that the world is now using far more silver than it mines. This supply deficit means manufacturers are scrambling for physical silver, pushing prices to new heights.

On Tuesday silver too faced the heat and suffered its steepest selloff in years with an 8.7% slide.

So, what caused this abrupt turnaround? The slumps came after technical indicators showed the rallies for both precious metals were likely "overstretched." Essentially, the prices may have risen too far, too fast, triggering a significant market correction.

Copper: The Undisputed King of the Future

Copper is often called "Dr. Copper" because its price can predict the health of the economy. Right now, it’s signaling a massive global build-out. Prices are trading near all-time highs, hovering between $10,600 and $10,800 per tonne.

The reason is simple: the green energy transition is impossible without it. An electric car needs about four times more copper than a regular gas-powered car. A single wind or solar farm uses tonnes of it. Now, add in the new, surprise demand from power-hungry AI data centres as the boom in AI data centres is reshaping the copper market, as each facility needs roughly 0.9 to 1.3 tons of copper for every megawatt of power it uses.

While mine disruptions are keeping prices high, the market is forecast to have a slight surplus of 178,000 tonnes in 2025, before flipping to a 150,000-tonne deficit in 2026.

The problem is that supply can't keep up. It can take over 15 years to find and build a new copper mine. The world needs copper now, but the supply is stuck in the past.

Nickel: Faltering in a Flood

And then there's nickel. While other metals are soaring, nickel is stuck in a slump. Just a few years ago, nickel was the hot metal for EV batteries. The glut is almost entirely driven by Indonesia, whose production now accounts for over 56% of the entire global mined supply. There is simply too much of it.

Nickel prices have faltered, plunging to a multi-year low of $15,078 per metric ton.

This supply surplus is paired with weaker-than-expected demand. Many automakers, especially for entry-level cars, have switched to cheaper, nickel-free LFP batteries. This one-two punch of a supply flood and softer demand has caused prices to fall, leaving nickel clear sluggish in the 2025 metals matrix.

Anubhav Awasthi