After gold prices hitting Rs 1 lakh, is it time for silver to rally?

Silver affords a viable various for those that missed the current gold surge. (AI picture)

Time for silver after the gold value rally? Silver could also be prepared for a big value improve to match gold’s efficiency. The present gold-to-silver ratio of 100, calculated by dividing gold prices by silver, has reached its highest level because the Covid interval in 2020, surpassing the century’s common of roughly 85, in accordance to Samco Securities. This metric signifies that silver presently presents higher worth.
When the ratio reached its historic peak of 126.5 in March 2020, silver prices subsequently doubled by August. Investors desirous about silver publicity may contemplate investing in silver ETFs.
“We find ourselves at an interesting threshold for silver because the gold-silver ratio has surpassed 100, which marks a significant event that has only occurred three times in the past 50 years (in 1991, 2020, and now),” mentioned Ramesh Varakhedkar, head – commodities at ICICI Securities in accordance to an ET report.
“Historically, this ratio being above 100 has often led to a strong recovery in silver prices as it (silver) tends to play catch-up with gold, which has rallied more swiftly in recent times.”
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Global gold prices elevated by over 25% in 2025, in accordance to investing.com knowledge, pushed by elevated demand for safe-haven property following Donald Trump’s tariff measures. In comparability, silver has achieved a 14.5% acquire this 12 months.
Geopolitical tensions may drive gold prices increased, doubtlessly reaching $3,600-3,700, in accordance to Navneet Damani, head of analysis – commodities & forex at Motilal Oswal Financial Services.
He suggests {that a} decision of tensions, significantly between President Trump and China, may lead to gold correction while benefiting silver efficiency. Damani maintains a optimistic outlook on silver, noting its fifth consecutive 12 months of provide deficit.
Silver affords a viable various for those that missed the current gold surge, Damani indicated.
According to Apurva Sheth, head of analysis at Samco Securities, present metrics recommend silver is undervalued relative to gold, with potential for worth appreciation in upcoming months.
Should you purchase silver?
Damani advises buying silver while taking opposing positions on gold, anticipating a doable 10% lower within the gold-to-silver ratio in the direction of 90. His silver value targets are $35-36, equal to ₹1,02,000-1,10,000 per kilogram.
Varakhedkar tasks silver prices to exceed $35, presumably reaching $40 by year-end, corresponding to roughly ₹1,10,000 per kg in home phrases.
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“For investors, this presents a prime opportunity to diversify their portfolios. Incorporating silver alongside gold not only balances exposure to precious metals but also positions investors to take advantage of silver’s anticipated price movement,” he mentioned.
Sheth notes silver’s attribute fast, transient value actions in contrast to gold, recommending present entry factors for merchants to capitalise on potential features.
(Disclaimer: Recommendations and views on the inventory market and different asset lessons given by specialists are their very own. These opinions don’t characterize the views of The Times of India)