After a turbulent trading week, precious metals ended on a mixed note in the international market. Gold settled at $4,345.50 per ounce, while silver closed at $71.30 per ounce. This movement pushed the gold-silver ratio to around 60, up sharply from a recent low of 54 earlier in the week, reigniting the debate over which metal currently offers better value for investors.
The gold-silver ratio, which measures how many ounces of silver are needed to buy one ounce of gold, is widely used as a valuation indicator between the two metals. According to market experts, the recent rise in the ratio is a key signal for portfolio positioning.
Amit Goel, Chief Global Strategist at Pace 360, explained that the ratio has an important reference level. He noted that 80 acts as a pivot point for investors. When the ratio drops below this level, silver tends to move into an overheated zone, while a ratio above 80 suggests gold may be overbought. With the ratio currently hovering slightly above 60, Goel believes silver prices appear stretched. He cautioned investors against fresh buying in silver at current levels, as the likelihood of profit-booking in the white metal has increased.
On the other hand, the current setup is seen as favourable for gold. Goel pointed out that the rise in the ratio from 54 to 60, while still well below the pivot point, indicates a potential shift of funds from silver back into gold. As silver looks overbought, gold may attract incremental flows from investors seeking relative value within the precious metals space.
Beyond technical indicators, broader fundamentals are also supporting gold’s outlook. Sugandha Sachdeva, Founder of SS WealthStreet, said gold is witnessing a structural transformation in global portfolios. She highlighted that the yellow metal is no longer viewed merely as a crisis hedge but is increasingly being treated as a core asset class. Investors are turning to gold not just for safety, but also for returns, diversification, and protection against inflation, currency depreciation, rising sovereign debt, and escalating geopolitical risks.
Sachdeva added that confidence in fiat currencies has weakened amid prolonged monetary expansion and high debt levels in developed economies. This has prompted central banks to diversify reserves away from the US dollar and increase allocations to gold. The shift, she said, marks a fundamental change in global demand dynamics.
Institutional participation is also expanding beyond central banks. In India, recent regulatory changes have allowed the National Pension System to invest up to 1% of its assets in gold and silver ETFs, potentially translating into additional demand of nearly $1.7 billion for precious metals. China has taken a similar step by permitting its pension funds to allocate up to 1% of their portfolios to gold from 2025, further strengthening long-term demand.
With silver appearing overheated and gold benefiting from both technical and structural tailwinds, experts suggest that investors may find gold to be the more attractive option at present. While both metals remain bullish in the broader commodity cycle, the current gold-silver ratio seems to favour the yellow metal over its white counterpart.
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