Top investments to watch in 2025

Investment performance in 2024

2024 was perhaps an excellent year for investing in general. Across the developed world, stocks rose to new highs driven by artificial intelligence hype — while precious and base metals, several soft commodities, and alternative asset classes all saw substantial gains.

The S&P 500, which is widely regarded as the benchmark for the US economy, rose by 27% in the year to above 6,000 points for the first time — while the UK’s FTSE 100 also rose by double-digits when including dividends. With elevated interest rates, bonds have also done reasonably well.

It is worth noting that even the best investments rarely go up in a straight line, and further, that past performance does not guarantee future results.

Regardless, there are a few consistent truths to remember. It remains very difficult to time the market — the prevailing wisdom being that time in the market beats attempting to precisely time your entry. It’s arguably also important to remember to think long-term, hold a diversified portfolio, and manage your risk.

Perhaps crucially with all assets classes soaring, it’s also important to remember to maintain a measured attitude, and to resist the temptation to engage in emotional trading driven by a fear of missing out.

How to trade with us

1. Learn more about trading
2. Open a CFD account with us or practise on a demo
3. Select your opportunity
4. Choose your position size and manage your risk
5. Place your deal and monitor your trade

With us, you trade using CFDs to benefit from leverage. Keep in mind, leverage means you can gain or lose money faster than expected. Because your position size is far greater than your deposit, you could lose more money than you put in. Be aware also that past performance is not an indicator of future returns.

Past performance is not an indicator of future returns.

Top investments to watch in 2025

These were the best performing equities within their respective assets class or index in 2024.

1. Nvidia
2. NatWest
3. Cocoa
4. Gold
5. Tin

Nvidia

Nvidia shares have risen by circa 2,150% over the past five years to an incredible $3.3 trillion market capitalisation and continues to be the star performer of the S&P 500. The picks and shovels stock of the artificial intelligence era saw revenue rise by 17% quarter-on-quarter and 94% year-over-year to a record $35.1 billion in Q3, with the lion’s share of this being data centre revenue, which also rose to record levels.

CEO Jensen Huang enthuses that ‘The age of AI is in full steam, propelling a global shift to NVIDIA computing. Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference. AI is transforming every industry, company and country. Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure.’

The company sports some advantages over its rivals: cutting-edge GPU architecture, developing the preferred chips for training complex AI and machine learning models, and a strong ecosystem of developers and clients. However, it faces more competition in the cheaper microchip segments and is perhaps too reliant on Taiwan’s TSMC for manufacturing.

NatWest

NatWest was 2024’s best performer of the FTSE 100, and continues to beat expectations, with Q3 results seeing an attributable profit of £1.17 billion and a return on tangible equity of 18.3%.

CEO Paul Thwaite enthuses that ‘the strength of NatWest Group’s performance is underpinned by the support we provide to our 19 million customers in every nation and region of the UK…As the UK’s biggest bank for business, and one that serves millions of households, NatWest Group plays a key role in driving economic growth across the UK. Throughout the third quarter of 2024, we have grown our lending, helping customers to buy or remortgage their homes or to start and grow their businesses.’

The bank also noted that through a combination of low defaults and increased optimism among consumers and businesses, it was expecting another decent performance in 2025. With inflation perhaps stickier than expected, the bank may also benefit from rates staying higher for longer.

Despite elevated interest rates, net loans increased by £8.4 billion — though some of this was due to acquiring Metro Bank’s mortgage portfolio. Overall, total income increased by 5.1% year-over-year to £3.77 billion.

Cocoa

Many soft commodities enjoyed an excellent 2024, including orange juice, eggs and coffee. But the highest returns came from Cocoa, which has surged to fresh highs of above $11,800 per tonne.

Coca has been engulfed in a perfect storm of supply issues, starting with problems derived from poor weather and disease in key producer countries including Ghana and Ivory Coast. A core issue has been dry conditions in the region — worsened by the seasonal Harmattan winds — which will also impact the mid-year cocoa crop harvested in April.

Accordingly, the International Cocoa Association has raised its 2023/24 global cocoa deficit estimate to 478,000MT, which is the largest deficit in some 60 years. Global cocoa inventories are also shrinking, with ICE-monitored cocoa inventories at US ports declining for the past 18 months and reaching a 20-year low in December.

The crop is also suffering from various pests including like black pod rot and swollen shoot virus — and the longer term effects of climate change isn’t helping. Further, the industry has a wider problem with ageing trees reaching the end of their productive life, alongside rising fertiliser, pesticide and labour costs. Meanwhile, global demand for chocolate continues to rise.

Gold

Gold has historically served as the reliable ‘safe haven’ asset and inflationary hedge during times of severe economic stress, and this trend continued reliably in 2024.

For perspective, the World Gold Council notes that central banks purchased 694 tons of the yellow metal in the first three quarters of 2024, slightly below the 2023 record but still at near all-time highs. And on a rolling four-quarter basis, net buying of 909t remains well above longer term average levels.

This marks a notable departure from the trend of selling gold in previous decades, and the buying has continued now for more than two years.

The appeal of gold lies in its characteristic as an asset that is not tied to any specific issuer or government, providing diversification for central banks away from other traditionally safe assets such as the US Dollar or US treasuries — and this is especially pertinent as the US debt ceiling crisis rumbles on.

Gold has rocketed above $2,600/oz in 2024 and may continue to climb in 2025. However, there is some uncertainty, especially if incoming US President Trump’s policies sees US interest rates stay higher for longer. Analysts are also closely watching Chinese demand, with the country being one of the biggest consumers of gold.

Tin

Perhaps surprisingly, Tin has been the best performing base metal of 2024. Tin futures are currently at some $29,750 per tonne, though analysts are concerned that China is willing to let the yuan depreciate to sustain exports in response to potential tariffs by the US, which would make Chinese tin relatively cheaper in dollar terms.

The metal is essential to solar panels, but its core use is as solder in phones, EVs, and semiconductors, which makes it crucial for AI-related technologies. BMI is projecting that tin prices will reach $45,000/ton by 2033, double the 2016-2020 average of $18,729/ton, with the market in a deficit from 2028.

Tin has been volatile historically given its very thin market, but there does appear to be a significant supply-side problem. Production is dominated by a handful of countries including China, Indonesia, and Myanmar — and there is a risk to western supply given China’s critical metals sabre rattling. Chinese smelters are already operating far below capacity, with reports that some are even using tailings due to ore shortages.

Meanwhile, the Man Maw mine in Myanmar — the largest in the world — has suspended production since August 2023, while Indonesian exports have collapsed this year due to delayed government approvals and environmental regulations.

Tin could continue to rise if these supply issues are not resolved.

Top investments summed up

• 2024 was perhaps an excellent year for investing in general. Across the developed world, stocks rose to new highs driven by artificial intelligence hype
• The S&P 500, which is widely regarded as the benchmark for the US economy, rose by 27% in the year to above 6,000 points for the first time
• Many soft commodities had an excellent 2024, including orange juice, eggs and coffee. But the highest returns came from cocoa
• Gold and tin both had an excellent year, the former for its safe haven status alongside central bank buying, and the latter due to widespread supply side problems