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Time of India
29-04-2025
- Business
- Time of India
After gold prices hitting Rs 1 lakh, is it time for silver to rally?
Silver offers a viable alternative for those who missed the recent gold surge. (AI image) Time for silver after the gold price rally? Silver may be ready for a significant price increase to match gold's performance. The current gold-to-silver ratio of 100, calculated by dividing gold prices by silver, has reached its highest point since the Covid period in 2020, surpassing the century's average of approximately 85, according to Samco Securities. This metric indicates that silver currently presents better value. When the ratio reached its historic peak of 126.5 in March 2020, silver prices subsequently doubled by August. Investors interested in silver exposure might consider 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)," said Ramesh Varakhedkar, head - commodities at ICICI Securities according 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." Also Read | RBI's gold buying spree continues! 57.5 tonnes added to gold reserves; second highest in 7 years Global gold prices increased by over 25% in 2025, according to data, driven by increased demand for safe-haven assets following Donald Trump's tariff measures. In comparison, silver has achieved a 14.5% gain this year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cost Of Amusement Park Equipment From Mexico Might Surprise You - See Tips Amusement Park Equipment | search ads Click Here Undo Geopolitical tensions could drive gold prices higher, potentially reaching $3,600-3,700, according to Navneet Damani, head of research - commodities & currency at Motilal Oswal Financial Services. He suggests that a resolution of tensions, particularly between President Trump and China, could lead to gold correction whilst benefiting silver performance. Damani maintains a positive outlook on silver, noting its fifth consecutive year of supply deficit. Silver offers a viable alternative for those who missed the recent gold surge, Damani indicated. According to Apurva Sheth, head of research at Samco Securities, current metrics suggest silver is undervalued relative to gold, with potential for value appreciation in upcoming months. Should you buy silver? Damani advises purchasing silver whilst taking opposing positions on gold, anticipating a possible 10% decrease in the gold-to-silver ratio towards 90. His silver price targets are $35-36, equivalent to ₹1,02,000-1,10,000 per kilogram. Varakhedkar projects silver prices to exceed $35, possibly reaching $40 by year-end, corresponding to approximately ₹1,10,000 per kg in domestic terms. Also Read | Gold prices hit Rs 1 lakh! What's the outlook for gold and should you buy or sell the yellow metal? Explained "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 said. Sheth notes silver's characteristic quick, brief price movements compared to gold, recommending current entry points for traders to capitalise on potential gains. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
Time of India
29-04-2025
- Business
- Time of India
Is the white metal ready for a catch-up rally?
Sheth said moves in silver are usually swift and shorter compared with gold. "We would suggest traders buy it at current levels, to take advantage of the rally." The gold to silver ratio - measured by dividing gold prices by silver - is at 100, the highest since Covid in 2020. It is also trading above its average levels for the current century of around 85 levels, according to data from Samco Securities. The gauge, which compares the prices of gold and silver, signals that silver offers better value now. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Is silver on the cusp of a catch-up rally with gold? A ratio measuring the price of silver versus gold indicates the white metal might be poised for a run-up as its recent underperformance is perceived as gold to silver ratio - measured by dividing gold prices by silver - is at 100, the highest since Covid in 2020. It is also trading above its average levels for the current century of around 85 levels, according to data from Samco Securities. The gauge, which compares the prices of gold and silver, signals that silver offers better value now."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)," said Ramesh Varakhedkar, head - commodities at ICICI Securities. "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."The ratio had made an all-time high of 126.5 in March 2020, from where silver prices had doubled by the month of August. Investors looking to bet on silver could consider buying its exchange traded funds (ETFs).Gold was trading at $3,300 per ounce and silver was at $32.99 per ounce as of 7 PM on gold prices surged over 25% in 2025, according to data from fuelled by growing demand for safe-haven assets in the wake of Donald Trump tariff actions. Silver has gained only 14.5% this year."Should geopolitical tensions continue to escalate, gold may maintain its upward trajectory, potentially reaching the $3,600-3,700 range," said Navneet Damani, head of research - commodities & currency at Motilal Oswal Financial Services "Conversely, if geopolitical risks subside - particularly if President Trump resolves with China - market sentiment could shift, leading to a correction in gold and a relative outperformance in silver." Damani remains bullish on silver because the metal's supply is in deficit for its fifth consecutive year."For investors who missed the recent rally in gold, silver presents an attractive opportunity," he Sheth, head of research at Samco Securities, said the ratio indicates that silver is currently undervalued compared to gold, and should see some catch up in the coming recommends investors buy silver and bet against gold, with the expectation that the gold-to-silver ratio could decline by approximately 10%, targeting the 90 level. His target for silver is $35-36, or ₹1,02,000-1,10,000 per expects silver to cross the $35 mark and potentially reach $40 by the end of the year, translating to around ₹1,10,000 per kg of silver in local currency."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 said moves in silver are usually swift and shorter compared with gold. "We would suggest traders buy it at current levels, to take advantage of the rally."
