In the last one year, gold has given tremendous returns to investors. Since October 2023, gold prices have increased by about 40 percent, which has given good profits to investors. On the other hand, silver has registered a gain of only 15 percent, which leads to the race. But experts believe that it would not be right to consider a metal to be a better investment option on the basis of prices. In such a situation, now the question is whether silver is going to catch speed now?
When does silver give better returns?
According to a study, whenever gold and silver boom together, silver often gives more profits. For example, from December 2008 to April 2011, silver prices increased by 353.4 per cent, while gold rose only 78.6 per cent in the same period.
A report by DSP Mutual Fund, published on Financial Express, states that it happened 10 times in the last 26 years when silver performed better than gold. This means that if the rally of precious metals is fast, silver can prove to be more beneficial for investment.
What does the gold-to-silver ratio say?
Another important indicator is ‘Gold-to-Silver Resho’, that is, how much ounce silver will be required to buy an ounce gold. Currently, this ratio is close to 102, while its long term average has been around 70. This means that either silver prices will increase rapidly or gold prices will fall.
If the gold remains stable at $ 3,333 an ounce and the ratio returns to 70, then the price of silver will have to go up to $ 48. In this sense, silver is currently looking cheap and there is more scope to move forward.
Silver demand more, less supply
Another big reason that goes to the silver side is the difference between its demand and supply. In 2025, the global demand of silver is expected to exceed its supply for the 5th consecutive year. This year, 1.20 billion ounces are expected to be demanded against the supply of 1.05 billion ounces. The silver market size is small, so the slightest increase in demand can move the prices rapidly. This is the reason that experts are optimistic about silver.
Investors’ silence is stopping speed
Although the industrial demand for silver is continuously increasing, it does not show much interest in the form of investment. This is the reason that its prices could not catch very fast at the moment. The situation was also a few years ago with gold, when investors were not taking much interest in it. But then the central banks of the world bought a huge amount of gold and gave a new place to its prices. If silver also gets the same support, then it can also catch speed.
Gold and silver prices in India
If we talk about India, then at present the price of 10 grams 24 carat gold is 96,330, while 1 kg of silver is being sold in 96,520. The prices of both are almost equal, but experts believe that silver is still a better deal, as it seems more likely to grow.
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