BSE SmallCap Plunges as Gold, Silver Soar in 2025 Global Asset Shake-Up

• India's BSE SmallCap index became one of 2025's weakest global assets, falling over 11% due to stretched valuations, weak earnings, and thin liquidity.
• Precious metals, particularly Silver (up 142%) and Gold (up 72%), significantly outperformed all other asset classes globally, driven by geopolitical tensions and rate cut expectations.
• Bitcoin underperformed in 2025, declining over 5%, a rare occurrence attributed to ETF redemptions and increased investor focus on AI-related stocks.
• Global equities saw strong rallies, with Brazil’s Ibovespa (50%), Pakistan’s KSE100 (48%), and Germany’s DAX (39%) leading gains, while US indices also performed well.
• Experts, including Morgan Stanley, predict continued underperformance for India's small-caps in 2026, but expect US stocks, especially small-caps, to outperform globally.

Why It Matters: 2025 saw BSE SmallCap struggle while Gold and Silver dominated, signaling a shift in global asset performance.