Gold-to-silver ratio hits 13-year low as silver’s 170% surge leaves gold behind. What should investors do?

Synopsis

Gold-to-silver ratio fell to 50, lowest since 2012, as silver surged 170% since 2025, far outperforming gold’s 76% rise. Silver hit record MCX highs, narrowing valuation gaps and reshaping precious metal investment signals amid global uncertainty for investors worldwide today.

Gold-to-silver ratio has dropped to 50, its lowest level since 2012, thanks to silver's stellar rally that has seen prices jump by a whopping 170% since 2025 and month-to-date in the new year compared to gold's 76% rally in the same period, according to commodity expert Anuj Gupta.

The white metal has gained 22% or by Rs 52,000 per kg in the first fortnight of January, becoming dearer by Rs 1.48 lakh since the beginning of 2025.

"The shift in the ratio has been dramatic after it peaked above 100 points in April 2025," Gupta said.

The March silver contracts hit a lifetime high of Rs 2,92,960 per kg on Friday on the MCX before closing with minor a decline at Rs 2,87,701. The silver rate briefly touched the Rs 3 lakh mark in the physical market if a 3% GST is taken into account.

Meanwhile, the MCX February gold futures touched their all-time high of Rs 1,43,321 per 10 gram before closing at Rs 1,42,474, dropping by Rs 43 in the previous session.

Gold prices have jumped by over 5% or Rs 7,000 per 10 gram in 2026, month-to-date, extending the rally by Rs 59,000 or 76% since the start of 2025.

Gupta said that silver prices have surged nearly 2.2X times those of gold, narrowing the gap with gold.

The gold-to-silver ratio shows how many units (ounces or grams) of silver are needed to buy one unit of gold. In simple terms, it reflects the relative price and performance of gold versus silver.

The ratio helps investors judge whether silver or gold is undervalued or overvalued compared to each other, rather than looking at prices in isolation.

Gupta has recommended a wait-and-watch strategy in light of the ongoing US-Iran crisis.

Also Read: RBI bans advance remittances for bullion imports in new forex rules

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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