Gold Looks The Better Bet Than Silver Now, Says Analyst

Gold and silver have both delivered eye-catching returns in recent months, but the balance of advantage between the two precious metals may now be shifting. According to research by Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities, market indicators, price action and relative valuation metrics increasingly suggest that gold could outperform silver over the medium term.

A key signal comes from the long-term Gold–Silver ratio, explains Sheth, which measures how many ounces of silver are needed to buy one ounce of gold. Historically, this ratio has acted as a reliable barometer of relative performance. “Since 2014, the ratio has repeatedly found strong support around the 65 level. Each time this zone has been tested, it has marked an important turning point, followed by phases where gold meaningfully outperformed silver,” she says.

Thus, anyone who is building his precious metals portfolio, suggests Sheth, then out of the two, he or she must add gold at this stage.

Once again, the ratio is approaching this critical support area, hinting that silver’s recent run may be closer to exhaustion on a relative basis. See the chart below:

This does not imply that silver is poised for an outright decline, notes Sheth. Silver has already enjoyed a strong rally over the past few months, driven by its dual character as both a precious metal and an industrial input. Robust industrial demand, especially from clean energy and electronics, has supported prices. “However, when silver significantly outperforms gold in a short span, it often leaves little room for further relative gains. At such junctures, history suggests that gold tends to regain leadership.”, says Sheth.

The broader macro backdrop also strengthens the case for gold. In a world where yields are rising and inflation expectations are creeping higher, owning hard assets remains essential. Gold, with its primary role as a store of value, believes Sheth, typically fares better than silver during phases of monetary uncertainty and macro stress. “While silver benefits from growth-linked demand, gold’s defensive appeal becomes more pronounced when investors seek stability over cyclicality.”

Gold prices climbed Rs 1,874 to hit yet another fresh record of Rs 1,35,496 per 10 grams in futures trade on Monday, tracking firm global cues. On the Multi Commodity Exchange (MCX), gold futures for February delivery jumped Rs 1,874, or 1.4 per cent, to touch a record of Rs 1,35,496 per 10 grams. It had gained Rs 3,160, or 2.42 per cent, over the past week, reported PTI earlier during the day.

Silver also witnessed robust buying. The white metal for the March 2026 contract advanced Rs 5,255, or 2.72 per cent, to Rs 1,98,106 per kilogram, but stayed below its lifetime high of Rs 2,01,615 per kg touched on Friday. The metal had skyrocketed Rs 9,443, or 5.15 per cent, over the past week.

Put simply, just as silver entered a powerful uptrend after consolidation a few weeks ago, gold now appears to be doing the same. For investors allocating to precious metals today, gold offers a more attractive risk-reward balance on a medium-term view. Between the two, this is a phase where gold deserves a larger place in the portfolio, summarises Sheth.