Hyderabad: A sharp rally in silver over the last year has shifted the near-term advantage towards gold, according to a report by Motilal Oswal Financial Services Ltd.
The report said silver prices jumped over 200 per cent in the past 12 months. In contrast, gold gained about 80 per cent during the same period. This sharp gap changed the balance between the two metals.
Motilal Oswal noted that the gold silver ratio fell sharply after silver’s strong rise. The ratio dropped from pandemic highs of 127 to around 50 at the start of 2026.
Gold silver ratio reset changes near-term outlook
The brokerage said the long-term outlook for precious metals remained positive. However, it warned that silver’s fast rise increased short-term risk.
“We remain positive on both metals, but silver’s recent rally has raised near-term swings,” said Navneet Damani, Head of Research Commodities, and Manav Modi, Commodities Analyst at Motilal Oswal Financial Services.
Damani said investors could manage risk better by raising gold allocation during such phases. He added that gold offers more stability during uncertain market conditions.
The report said silver showed sharper price moves, while gold stayed relatively stable. It added that silver’s rise from ₹60,000 to ₹3,20,000 per kg could lead to a pause or profit booking.
Motilal Oswal clarified that this view was not negative on silver. Instead, it suggested a careful shift after a steep rise.
The report also highlighted fund flows. Global silver ETFs saw outflows of over 3 million ounces in 2026. Gold ETFs, however, recorded steadier inflows.
Motilal Oswal said global liquidity remains supportive for gold. It cited rising money supply in the US and China. China’s money supply grew over 8 per cent year-on-year, which often supports gold demand.