Click to view: Hard Assets Outperforming Financial Assets

2025 Asset Performance: A Clear Shift Toward Hard Assets

So far in 2025, markets are showing a clear preference for tangible, defensive assets. Silver and gold are leading with strong gains, reflecting continued demand for stability in an uncertain environment. Investors appear to be looking for ways to protect their wealth as interest rates, inflation, and geopolitical risks remain front of mind.

Shares, particularly in the US, are still performing well, though not at the same pace as precious metals. The NASDAQ and S&P 500 continue to deliver steady returns, supported by large technology and consumer companies. In comparison, the Australian share market has been positive but slower.

Property-related assets show modest growth. Australian housing remains relatively resilient, supported by limited supply and population growth. Farmland and commercial property investments are faring differently, with US farmland stocks and commercial REITs under pressure due to rising costs and tighter financing conditions.

Meanwhile, Bitcoin has seen a small lift this year, but well below previous levels of excitement. Oil is down as global demand expectations soften.

Overall, the current market environment highlights a shift back toward real, scarce and productive assets. While traditional financial markets are still delivering returns, it’s clear that investors are increasingly valuing assets with intrinsic and enduring value.