If you’re considering investing in precious metals, gold and silver are the two most common picks. They both shine, but they work very differently. Recent market behaviour shows silver gaining ground fast—but is it enough reason to prefer silver over gold? Let’s dig in.
In India:
- Silver prices in India jumped nearly 49% this year and have outpaced gold in some intervals.
- Gold in India is up ≈43% year-to-date, trading now above ₹1,13,100 per 10 grams in Delhi.
Globally:
- Gold has surged ~39-40% Year-to-Date (YTD) in 2025 in many international markets.
- Silver has also seen an impressive rally, sometimes ~45% YTD or more, depending on region / market.
Expert Views: What the Big Thinkers Are Saying
- UBS raised its gold target to US$3,800 per ounce by end-2025 and expects continued demand from central banks along with weaker USD and geopolitical risks.
- Ray Dalio has suggested increasing allocation to gold over U.S. Treasurys for stability amid rising U.S. debt and deficits. He recommends gold as part of a diversified safe-asset strategy.
- On silver: many analysts believe silver may outperform gold in 2025 because of its undervaluation, rising industrial demand (solar, EVs, electronics), and more speculative interest as rate cuts approach.
- Some experts caution silver’s higher volatility: while rallying hard, it also faces risks if industrial demand slows or if economic conditions worsen. Gold is seen as safer, particularly during market stress or downturns.
Which One Makes Sense for You?
Here’s what to think about, depending on your goals:
- If your priority is safety and stability → Gold is likely better. It’s less wild, more dependable during economic or geopolitical shocks.
- If you believe industrial demand will boom (EVs, solar, tech) and are okay with more risk → Silver might offer higher upside. Silver tends to move more when industry demand is strong.
- If you’re diversifying → Many experts suggest having both. A mix gives you exposure to silver’s upside and gold’s defensive comfort.
- If budget is limited → Silver may be more accessible and you can buy smaller units. But remember making charges, storage, and purity matter.
- If you think rates will come down and inflation stays sticky → These conditions favor both, but particularly silver because industrial and speculative demand can amplify gains.
Potential Risks
- Volatility: Silver may swing sharply in both directions. If demand falls or recession hits, silver often falls more.
- Supply constraints / industrial fluctuations: Silver’s price depends heavily on industrial use; any slowdown (e.g. in global manufacturing or solar panel demand) can hurt.
- Inflation vs interest rate risk: If central banks hike rates more than expected, both metals can suffer (gold less so), but silver more.
- Currency risk and premium: For Indian investors, rupee fluctuations + import duties + taxes can eat into gains.
Bottom Line: What Experts Would Likely Do
- Many are leaning slightly more towards gold for its stability, especially in portfolios that need protection. Gold is getting more central bank demand and is seen as better hedge against inflation, currency risk, etc.
- But silver is getting serious attention now: undervaluation, industrial demand, and a strong YTD rally make it appealing.
- A balanced strategy could be something like 5-10% of portfolio in gold and a smaller slice in silver, depending on risk tolerance and price levels.
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