The prices of gold and silver entered a spectacular rally on Monday, shattering previous records as global and domestic markets surged on the back of renewed hopes for US interest rate cuts and robust safe-haven demand.
Historic Highs in Global and Domestic Markets
In international markets, spot gold soared 1.7% to $4,411.01 per ounce, briefly touching a peak of $4,420.01. This marked the first time the precious metal crossed the $4,400-per-ounce threshold. Not to be left behind, spot silver jumped 2.5% to $69.44 per ounce, also achieving a record high.
The momentum was mirrored powerfully on the Multi Commodity Exchange (MCX) in India. During morning trade, MCX gold February futures climbed 0.77% to ₹1,35,224 per 10 grams. The real star of the show was silver, where MCX silver March futures surged 2.39% to ₹2,13,412 per kilogram, after hitting an unprecedented high of ₹2,13,844 per kg around 9:15 am.
Unprecedented Annual Gains and the Gold-Silver Ratio
The scale of this year's bull run is staggering. Gold has gained an impressive 67% so far in 2024, breaking past the $3,000 and $4,000 marks and heading for its best annual performance since 1979. Silver, however, has dramatically outperformed its peer, skyrocketing 138% year-to-date. This surge is fueled by strong investor interest and persistent tightness in supply.
This dynamic has shifted the Gold-Silver Ratio (GSR)—the amount of silver needed to buy one ounce of gold—to the 64-66 range. Analysts note that while gold is in a decade-long bull run, silver's rally is about five and a half years old, suggesting significant catch-up potential.
NS Ramaswamy, Head of Commodity & CRM at Ventura, expects the GSR to move towards 58-60, indicating a combined bullish trend. This could translate to gold reaching $4500 and silver touching $75 in the near term. He also cautioned that a higher GSR might lead to a mild correction in silver to $62-$65, with gold ranging between $4550 and $4600.
Gold vs Silver: Which Metal is a Better Bet Now?
Experts are divided on where investors should focus, highlighting the differing fundamentals of the two metals.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, argues that silver is undergoing a fundamental transformation. "Silver is no longer trading merely as a precious metal like gold," he stated. Its critical role in high-tech industries, coupled with shrinking stocks and unwavering industrial demand, is changing its market structure. He attributes the price strength to robust industrial consumption, steady ETF inflows, healthy physical demand, and capital moving from equities to commodities.
"We believe silver offers a better investment opportunity for 2026, given its strong structural drivers. However, investors should remain prepared for higher volatility and periodic interim corrections," Kalantri advised.
On the other hand, NS Ramaswamy advocates for a balanced portfolio approach. He suggests that gold remains the preferred asset for stability and wealth preservation, acting as a classic safe haven. Silver, with its higher growth potential accompanied by greater volatility, tends to attract the trading community.
"Silver often swings more while Gold appears to move very cautiously in a steadier fashion. Hence a mix of both is recommended. The best choice depends on the investment horizon, risk appetite and financial goal," Ramaswamy concluded.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
