Gold vs silver: The year 2025 belonged to silver in every sense. The white metal surged 170%, not only far eclipsing the 70% rise delivered by its more expensive cousin, gold, but also emerging as the best-performing asset across categories.
The rally in silver was driven by a mix of fundamental and speculative factors, including geopolitical tensions, a widening demand-supply mismatch, a weaker US dollar, and the Federal Reserve’s rate cuts. Leveraged positioning and options-driven trading further amplified the surge.
2026 began on a strong note for both precious metals, with silver continuing its outperformance. However, selling pressure toward the end of January erased nearly half of its earlier gains. MCX silver prices still traded almost 40% below their peak of ₹4,20,048 registered in January.
Gold, too, corrected, but the extent of the decline was more contained as its larger market size lends it stability. Currently, gold prices are down 18%.
Gold returns higher than silver YTD
The selloff altered the dynamics. Gold prices are up 16% year-to-date (YTD) at a time when silver has risen over 11% in the domestic spot market.
After last year’s boom, analysts largely see 2026 belonging to gold.
Kunal Shah, Head of Commodities Research at Nirmal Bang, said, “The time of silver outperformance is done. Going forward, the outperformance should definitely be taken over by gold. We have seen exponential rises in silver prices, we have seen demand waning, the supply side improving, and we have seen a sharp crash in silver futures. So I don’t expect it to rise the way it did earlier.”
In 2025, the estimated supply deficit of silver was about 95 to 125 million ounces globally, and silver has been in deficit for the past many years. The year 2026 will be the sixth year of deficit for silver.
Shah, however, said that the silver deficit is not a leading indicator. “There is nothing wrong with the supply side. The supply side is still quite healthy. It’s just that people were looking at China and going long. When silver prices corrected in a matter of two days, even at that time, Shanghai was trading at a premium of $15 to $20,” he observed.
Prathamesh Mallya, DVP Research – Non Agri Commodities at Angel One, also expects gold to lead. “Silver rally has already happened in recent times, gold has the probability of higher performance in 2026.”
He further added that the gold-silver ratio is consolidating in the range of 60-65, indicating gold has more room for higher outperformance. The ratio compares the price of an ounce of gold with that of silver, signalling which metal has the scope of outperforming in the future.
The typical range of gold-silver is between 50 and 70; so if the ratio is sitting around the 80 mark, this suggests the time could be right to buy silver. While a fall to levels below 40 indicates gold has the upper hand.
The typical range of gold to silver is between 50 and 70, so if the ratio is sitting comfortably around the 80 mark, this suggests the time could be right to buy silver. Throughout history, the ratio has fluctuated widely. Just ahead of the silver’s 50% crash, the gold-silver ratio had plunged to below 45.
However, not all are convinced about gold’s outperformance.
Aamir Makda, Commodity & Currency Analyst, Choice Broking, said that if we compare gold and silver, it is likely that silver may deliver higher returns to its investors compared to gold.
“In 2025, we have witnessed upside momentum in gold, mainly due to its safe-haven appeal, which was triggered by geopolitical tension, global trade wars and recession fears. On the other side, apart from these factors, silver suffers by structural deficits,” he opined.
How should investors allocate to gold and silver?
Deciding the right allocation is also key. With gold expected to outperform, Mallya said that in a portfolio of ₹100, if 15% is allocated to gold and silver, then 10% should be in gold and 5% in silver.
If it’s a 20% allocation, then also 15% should be in gold, and 5% should be in silver, he opined.
Meanwhile, Makda said that investors may put a higher amount of investment in silver compared to gold in a more aggressive approach, as silver will give more risk premium than just a safe-haven asset.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
