Gold-silver ratio: Following a volatile week, gold prices in the international market settled at $4,345.50 per ounce, while the silver price concluded at $71.30 per ounce. This led to a rise in the gold-silver ratio to around 60, which once hit a low of 54 on Monday. As experts are bullish on both precious bullions and base metals, such as copper and aluminium, which are also catching momentum, it would be prudent to determine whether gold remains an attractive option for investors or whether they should consider silver as an investment option, given the white metal’s dual value in both investment and industrial applications.
What gold-silver ratio signals?
Decoding the gold-silver ratio, Amit Goel, Chief Global Strategist at Pace 360, said, “In the gold-silver ratio,80 is the pivot point. When the gold-silver ratio falls below 80, silver prices begin to enter the overbought zone. Similarly, when this ratio exceeds 80, gold prices enter the overbought zone. As the gold rate today in the international market is $4,345.50 per ounce and the silver rate today is $71.30 per ounce, the gold-silver ratio stands slightly above 60, indicating that silver rates today are in the overbought zone. One should avoid buying the white metal in the current market scenario.”
Is it the right time to buy gold?
The Chief Global Strategist at Pace 360 stated that the current market scenario for bullion is ideal for buying gold, as the gold-silver ratio has risen from 54 to 60 and remains 20 points away from the pivot point. Therefore, investors are expected to shift funds from silver to gold, as silver is currently in the overbought zone and profit-booking may occur at any time in the white metal.
On fundamentals that also suggest a bull trend in gold prices, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Gold is undergoing a major structural re-rating, transitioning decisively from a peripheral hedge into a mainstream core asset for portfolio allocation. What was once viewed largely as a crisis hedge is now being embraced for its returns, stability, and diversification benefits, particularly as protection against inflation, currency debasement, excessive debt accumulation, and rising geopolitical risk. This shift reflects a broader loss of confidence in fiat systems, especially amid persistently high debt levels and prolonged monetary expansion across developed economies.”
Suggesting that precious metal investors consider gold, the SS WealthStreet expert noted that a key driver of this transformation is the aggressive diversification of reserves by central banks, which are steadily reducing their reliance on the US dollar and reallocating towards gold. She said that gold demand is undergoing a tectonic shift, as non-state entities like Tether are buying gold in bulk because the precious yellow metal is no longer just a hedge against inflation.
“This trend is no longer confined to central banks alone. In India, a landmark regulatory change has allowed the National Pension System to allocate up to 1% of its assets to gold and silver ETFs, implying potential incremental demand of nearly USD 1.7 billion for precious metals. Similarly, China in 2025 permitted its pension funds to allocate up to 1% of their portfolios to gold, further broadening institutional demand,” said Sugandha.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
