In times of crisis, Indians turn to gold for its safe haven appeal. However, as the West Asia conflict continues to drag on, PM Narendra Modi has appealed Indians to defer gold purchases so as to reduce imports and protect foreign exchange reserves. In line with the appeal, the central government has also raised import duty on gold and silver from 6% to 15%.
Before the US-Iran war began, both the precious metals touched their all-time highs in January this year. While they are now down from their peaks, the question arises – which among the two metals would be a better investment in the longer run, especially in the current scenario?
Even after the sharp rally, silver remains significantly cheaper than gold. But can it prove to be a better bet than gold for long-term investors?
Over the past year, the yellow metal has returned approximately 47% while silver lapped it entirely at around 147%. Both gold and silver carry compelling cases for long-term investors, each driven by distinct but powerful tailwinds - and both have more road ahead, says Sachin Jasuja, Head of Equities and Founding Partner, Centricity WealthTech.
Devil’s metal (silver) vs the steadier anchor (gold): What to buy?
Gold’s inherent value as a safe haven asset during times of geopolitical and economic uncertainties keeps the allure for this precious metal for any long-term investment. Similarly, silver, due to its duality as both precious metal and new-age industrial usage such as renewable energy, can add value for an investment portfolio.
If you have earmarked Rs 1 lakh to invest in some precious metal, should it be gold or silver? Don’t just go by the past returns. Consider other crucial factors too like their demand, use cases etc. Samit Guha, Managing Director and CEO, MMTC-PAMP, tells ET Wealth Online, “historically silver has shown the ability to outperform gold during strong commodity and industrial cycles, though with significantly higher volatility.”
Gold prices have appreciated over 200% since the last decade, rising from nearly Rs 27,000 per 10 grams in 2015 to Rs 1.5 lakh levels currently. However, silver too has shown its sheen in recent times, outperforming gold due to rising new-age industrial demand like renewable energy for solar panels and EVs. In 2025 alone, silver delivered stronger returns than gold.
Gold or silver: Where to invest Rs 1 lakh today for best returns?
While it might have the affordability appeal, silver is not for the faint-hearted and so it earned the 'devil's metal' label, Jasuja explains, adding that the yellow metal remains the steadier anchor. “On Rs 1 lakh invested a year ago: silver is approximately Rs 2.5 lakh today while gold is approximately Rs 1.47 lakh,” he says.
MMTC-PAMP’s Guha notes, "Illustratively, if Rs 1 lakh is invested over a long horizon, gold may offer steadier compounding, while silver may generate relatively higher returns during bullish industrial cycles. However, investors should remember that silver also witnesses sharper corrections compared to gold, making it suitable only for those with higher risk appetite and a longer investment horizon.”
Gold-silver ratio below 55: How should investors plan their investments?
From a high of 107 at the start of 2026 to 55 now, the Gold-Silver Ratio (GSR) has significantly dropped, due to a sharp rise in silver prices. GSR measures how many ounces of silver are required to buy one ounce of gold. A higher ratio suggests that gold might underperform, while a lower ratio signals that silver has soared quite a lot.
ALSO READ | What should you do with your gold investments as gold import duty increases to 15%?
“So a fall below 55 indicates that silver has significantly outperformed gold in recent months. This reflects strong industrial demand for silver driven by sectors such as solar energy, EVs and electronics,” Guha tells, further adding that a sharply falling GSR can also indicate that silver may be entering an overbought phase in the short term.
Jasuja recalls that the gold-silver ratio historically averaged 60–70, while it peaked to 125 during the COVID pandemic. It stood at 88 in January 2025, compressed to 42 at silver's all-time high, and has now fallen below 55 again. “That journey in 16 months tells the entire story,” he adds.
Gold, silver in portfolio: What should be your ideal allocation?
Gold's case is structural and enduring. Central banks bought net 863 tonnes in 2025, the fourth-largest annual purchase on record and show no signs of slowing. Nations are now actively reducing USD reserve dependence and replacing it with gold. Why? Apart from the safe haven appeal, gold also serves as the anchor in a volatile portfolio.
An ideal allocation between gold and silver should depend on an individual’s risk appetite, financial goals and investment goals, Guha underlines. “Gold can be part of the core investment portfolio. Silver can be allocated for a diversified profile and a tactical allocation to benefit from industrial demands and short-term higher returns.”
It is generally recommended to keep 10-15% of the overall portfolio in precious metals, with silver comprising around 5-10% depending on risk tolerance, he tells ET Wealth Online. Like it is always suggested, the focus should remain on diversification and disciplined long-term allocation rather than chasing short-term rallies in either metal.
For Rs 1 lakh, the allocation could look like 70% gold, 30% silver for conservative investors; 50-50 for the aggressive ones. “Stick to liquid ETFs, silver ETFs in India have traded at 14–16% above spot at peak demand, and liquid counters reduce that distortion,” Jasuja advises.
80-50 investment strategy for gold, silver investments
Investors can also use the 80-50 rule to decide on which precious metal to invest in based on the GSR. This investment strategy suggests that investors typically tend to move towards silver when the gold-silver ratio goes above 80.
When the ratio drops below 50, gold is considered relatively cheaper, thereby indicating that putting money in gold could be a good choice.
“A staggered or SIP-based approach towards silver may be more prudent while continuing to maintain gold as the core portfolio allocation,” Guha highlights. The key takeaway is that gold and silver are increasingly responding to different market drivers and should be viewed as complementary assets within a diversified portfolio.
While gold is more suited for portfolio stability and wealth preservation, silver can offer stronger upside during industrial and commodity cycles, albeit with higher volatility.
Gold prices today (May 15, 2026)
Gold prices witnessed a decline on Friday (May 15, 2026), with rates falling across major jewellery brands and IBJA after rising sharply two days ago. The latest rates issued by the India Bullion and Jewellers Association (IBJA) also indicated a decline in both gold and silver prices compared to the previous session.
IBJA’s indicative retail selling rates for gold jewellery today (AM rates):
Fine Gold (999) – Rs 15,816
22 KT – Rs 15,436
20 KT – Rs 14,076
18 KT – Rs 12,811
14 KT – Rs 10,201
Silver (999) – Rs 2,67,500
Note: The above rates are without 3% GST and making charges.
Silver prices today (May 15, 2026)
Silver prices saw a sharp reversal following the government’s import duty hike, with MCX silver falling nearly 11% or Rs 32,624 per kilogram from Rs 3.04 lakh in just two trading sessions. On Friday (May 15, 2026), MCX silver rate plunged 6% or Rs 17,500, wiping out the entire rally triggered by the Centre’s decision to raise gold and silver import duties to 15%.
