Gold-silver ratio today: Should you adopt ‘sell silver, buy gold' strategy?

Both gold and silver have seen impressive rallies in the current calendar year, gaining in double-digits. While trade war jitters and hopes of monetary easing are driving the bullion to record high level, the rally in silver prices comes amid growing industrial demand from solar and electronics industries.

In 2025, MCX gold prices have risen 18% to a record high level of ₹91,696 per 10 grams, which the yellow metal touched today (April 3), as the latest round of tariff imposition by US President Donald Trump further strengthened safe-haven demand.

Donald Trump announced reciprocal tariffs on 180 countries, further escalating global trade tensions. Trump unveiled new duties on trading partners, including India, using tariffs as a bargaining tool to push for lower duties on American goods.

While this move played out well for bullion investors, silver did not see a similar fate. Silver futures on the MCX tumbled 3% to ₹97,080 per kilogram as the same tariffs are expected to dent industrial demand, wherein silver has a wide usage. Despite this fall, the white metal has gained 11% on a year-to-date (YTD) basis, and topped the coveted ₹1,00,000 mark.

"Silver’s fundamental look is impressive, but the fear of an economic slowdown due to the trade war may affect silver’s industrial demand and cause a short-term correction in the price. Safe-haven demand, strong central bank buying, and robust ETF inflows will continue to support gold prices," said Anuj Gupta, Head — Commodity & Currency at HDFC Securities.

Time to sell silver & buy gold?

Even the rising gold-silver ratio is signalling towards a growing cautious sentiment among market participants, driving demand for gold. This ratio is used by investors to assess the relative value between gold and silver. It measures how many ounces of silver are needed to buy one ounce of gold.

Often, market experts use this to gauge the prevailing investor sentiment. A higher ratio, denoting the demand for gold, means investors are becoming more risk-averse and prefer the safety of gold. This is visible with the record high gold prices in both domestic and international markets. The gold-silver ratio reached a three-year high in the international market, and analysts believe it may retest the 100 and 105 levels soon. They expect silver to remain subdued, recommending buying gold over silver.

"We believe that silver prices will remain under pressure in the short term, so traders can adopt a strategy where they sell silver and buy gold and set up trades when the ratio is 92–93, and one can book profit around the 100 level and keep a stop loss at 88," said Gupta.

If both gold and silver rise but the ratio remains elevated, it reflects continued underperformance by silver. This divergence could signal an impending correction, said Ajay Kedia, Director, Kedia Advisory.

He advised investors to remain cautious, as silver may crash sharply if momentum fails to sustain.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.