The gold-silver ratio hits a 13-year low as silver’s 170% rise trails gold. What should investors do?

The gold-silver ratio has fallen to 50, the lowest level since 2012, thanks to silver’s stellar rally, with prices up as much as 170% since 2025 and month-to-date into the new year, compared to gold’s 76% rally in the same period, according to commodities expert Anuj Gupta.The white metal has risen 22% or Rs 52,000 per kg in the first half of January and has become dearer by Rs 1.48 lakh since early 2025.

“The shift in the ratio was dramatic after it peaked above 100 points in April 2025,” said Gupta.The March silver contracts touched a record high of Rs 2,92,960 per kg on the MCX on Friday before closing with a small decline at Rs 2,87,701. The silver rate briefly touched the Rs 3 lakh mark in the physical market when a 3% GST is taken into account.

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

Gold prices have risen by over 5% or Rs 7,000 per 10 grams so far in 2026, extending the rally since early 2025 by Rs 59,000 or 76%.

Gupta said the price of silver is almost 2.2 times that of gold, narrowing the gap with gold. The gold-silver ratio shows how many units (ounces or grams) of silver are needed to purchase one unit of gold. Simply put, it reflects the relative price and performance of gold versus silver.

The ratio helps investors assess whether silver or gold is undervalued or overvalued compared to each other, rather than looking at the prices individually.

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

Also read: RBI bans advance payments for bullion import in new forex rules

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