Gold-Silver Ratio Strategy Investment: Gold and silver delivered stellar returns in 2025. While silver prices surged more than 160 per cent, gold prices zoomed over 75 per cent. But for the past few weeks, gold and silver prices have been under pressure and have even corrected up to 35 per cent.
Gold prices hit a record high of Rs 1,78,850 per 10 grams in January, 2026. Likewise, silver prices touched a record of Rs 4,20,000 per kg on the same day.
From the peak, both gold and silver prices have corrected significantly and are down around 16 per cent (gold) and 35 per cent (silver), according to data.
Silver price falling reasons decoded in 4 points
The correction in silver prices shows that the white metal has corrected twice as much as gold. This fall in silver prices is not random; instead, it shows a specific pattern.
Gold-Silver Ratio Strategy
To understand this, it is important to know about the gold-silver ratio tool. The gold-silver ratio tool calculates and tells whether silver is cheap or expensive, compared with gold.
Gold-Silver Ratio Formula: Gold Price / Silver Price
For example: Rs 1,50,000 (assuming gold price per 10 grams) / Rs 2,400 (silver price 10 grams)
Gold-Silver Ratio: 62.5 (It means that one can buy 620 grams of silver for the value of 10 grams of gold.)
Gold-Silver Ratio Strategy: Above 80
When the gold-silver ratio crosses the 80 mark, it means that silver is historically cheaper than gold.
During the COVID period, silver was extremely cheap as the gold-silver ratio was above 80. Since then, silver prices have skyrocketed and filled the gap.
Gold-Silver Ratio Strategy: Below 50
When the gold-silver ratio falls below the 50 mark, it means that silver prices are higher than gold.
Gold-Silver Ratio Strategy: Impact On Investment
It is usually seen that when the gold-silver ratio comes in the range of 40 to 50, a sharp fall of around 30 per cent is seen in gold prices from the peak. In the case of silver, the prices fall by around 60 per cent.
In the last 12 months, the gold-silver ratio has followed the pattern. In April 2025, the gold-silver ratio was more than 100, meaning silver was deeply undervalued.
In January 2026, the gold-silver ratio was below 45, and silver prices rallied 150 per cent.
In March 2026, the gold-silver ratio was around 66 and silver prices corrected by 45 per cent from all-time high. In the case of gold, 20 per cent correction was seen in the yellow metal.
VIDEO: Should You Buy Gold Or Silver Now? | Gold-Silver Ratio Strategy
Meanwhile, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said that gold and silver are not rising despite escalating geopolitical tensions because macro headwinds are outweighing safe-haven demand. The surge in crude oil prices is keeping inflation elevated, which is forcing central banks, especially the Fed, to maintain a higher-for-longer interest rate stance. This strengthens the dollar, reducing the attractiveness of non-yielding assets like gold and silver.
"Overall, metals are currently tracking interest rate expectations and dollar strength more than geopolitical cues," the analyst said.
