Is silver able to play catch-up?

Mumbai: As gold extends its record-breaking run, bullion buyers are weighing its cheaper funding various, silver, with larger curiosity. It is because a key ratio that compares the costs of gold and silver is signalling that the latter affords higher worth now. Buyers seeking to guess on silver may contemplate its Change Traded Funds (ETFs).

The silver-to-gold ratio is at present at its all-time low of 0.01, mentioned Sahil Kapoor, head of merchandise & market strategist at DSP Mutual Fund. Its all-time excessive is 0.06.

The ratio exhibits how low cost or costly silver is in comparison with gold.

On common, it takes between 60 and 70 ounces of silver to equal the worth of 1 ounce of gold. At the moment, it will take 90 ounces of silver to purchase one ounce of gold.

Analysts mentioned this implies a better probability of a catch-up in silver costs.”After the latest sharp run-up within the value of gold, there’s a greater margin of security in shopping for silver within the quick time period,” mentioned Kapoor.To date in 2025, silver has risen 13.3% in comparison with gold’s 11.77%. But it surely has been an underperformer up to now three years. Silver returned near 37% as in opposition to gold’s 54% in greenback phrases on this interval. Gold value soared to an all-time excessive of $2,947.11 per ounce on Wednesday, sustaining its bullish momentum, as its repute as a secure haven instrument has gained additional traction on issues that US President Donald Trump’s tariff insurance policies would gasoline inflation.

Although the valuable metallic may strengthen additional, the tempo of the upmove could possibly be slower, mentioned analysts.

“US Fed delaying charge cuts, peace talks between Russia and Ukraine, and gradual implementation of the commerce tariffs are headwinds for the yellow metallic. The premises of uncertainty with which gold is presently rallying would vanish,” mentioned NS Ramaswamy, head – commodity desk & CRM, Ventura Securities.

Ramaswamy expects gold costs to achieve $3,200 per ounce, or ₹95,000 per 10 grams, throughout the calendar 12 months. This means a return of 9-10% in rupee phrases.

Silver may rally sharper additionally due to its elevated industrial demand.

“There’s extra room for incremental good points in silver within the close to time period, and buyers may accumulate on any fall,” says Manav Modi, bullion analyst, Motilal Oswal Monetary Companies.

Modi has a value goal of ₹1.1 lakh to ₹1.25 lakh on silver over the subsequent 12 months, which interprets into a mean return of 20% on the metallic. Although returns from silver could possibly be greater, analysts warning retail buyers concerning the volatility. Ramaswamy factors out that silver is 2.5 occasions extra risky than gold.