Editor’s Note
This analysis highlights a significant shift in 2025’s financial landscape, where gold and precious metals emerged as the dominant asset class, delivering substantial returns. In contrast, funds tied to specific regional and sectoral bets, such as India and technology, underperformed. This divergence underscores the importance of portfolio diversification and the dynamic nature of market leadership.
![금과 귀금속이 2025년 금융 시장을 지배했지만, 거품 우려도 커지고 있다 [사진: Reve AI]](https://cdn.digitaltoday.co.kr/news/photo/202512/614949_569402_5843.jpg)
An analysis suggests that gold and precious metal-related funds dominated the financial markets in 2025. While soaring gold prices delivered massive returns to investors, funds focused on India and technology stocks showed lackluster performance.
According to Morningstar Direct data cited by blockchain media Cryptopolitan on the 20th (local time), all of the UK’s top 10 funds adopted investment strategies related to gold, silver, or precious metal mining companies.
Record-breaking gold price increases drove fund returns. The price of gold surged 60%, surpassing $4,300 per troy ounce, while silver also exceeded $60 per ounce in December. Factors triggering this include geopolitical turmoil, central banks’ avoidance of the dollar, persistent inflation, and investor FOMO (fear of missing out) sentiment.
However, he urged a cautious approach, stating, “Gold is highly volatile and could experience long-term stagnation.”
Precious metal strategies also showed strength in Europe. Morningstar’s Ken Lamont stated, “Europe’s top funds are also concentrated on precious metal-centric strategies.” Darius McDermott, Managing Director of FundCalibre, added, “Gold and precious metal funds recorded astonishing returns in 2025, showing strong performance not only in the US but in most stock markets.”
He supported this with 2022 data, emphasizing that while stocks and bonds performed poorly at the time, gold maintained stability.
In contrast, funds investing in the Indian market underperformed. Ken Lamont pointed out, “Growth expectations were dampened by tariff issues, and the depreciation of the rupee negatively impacted UK investors.” Indian technology stock funds were also hit by reduced demand for IT services.
Meanwhile, the Bank for International Settlements (BIS) warned that gold and the US stock market are showing signs of a bubble. The BIS analyzed, “In the past 50 years, gold and stocks have not simultaneously entered bubble territory,” and “if the bubble bursts, a sharp adjustment will follow.”