Silver may shine brighter than gold

IN RECENT MONTHS, gold prices have rallied both globally as well as in India. However, silver prices have remained muted, comparatively.

- RAJESH BHAYANI

Since the beginning of the calendar year, gold has jumped 25.1% while silver has risen by 13.5%. On Friday, silver closed at ₹97,442 per kg at the MCX spot market.

No wonder, analysts are betting on silver to rise faster than gold in the coming years. Ajay Kedia, director at Kedia Advisory, expects silver to give higher returns compared to gold in coming months as the rally in the latter may take a breather.

Another key reason for analysts to bet on silver is the rising gold-to-silver ratio, which has gone over 100 in the past few months—only the second time since the Covid crisis when the ratio hit 126. The ratio is calculated on the basis on ounces of silver that can be purchased with one ounce of gold. A high ratio suggests that gold has risen much faster than silver, which if one goes by historical data, is unsustainable.