When evaluating gold and silver as investment options in India up to March 2025, it’s essential to consider their recent performance, historical trends, and market dynamics. This blog is only for reference knowledge. For actual investment, financial advisor must be consulted.
Recent Performance (March 2025):
Gold: As of March 20, 2025, the price of 24-carat gold in India reached ₹90,660 per 10 grams, marking a significant increase from previous levels.
silver: As of March silver prices were recorded at ₹99,100 per kilogram.
5-Year Performance (2020-2025):
Gold: In 2020, gold prices surged due to global economic uncertainties, reaching approximately ₹50,000 per 10 grams. By March 2025, prices have escalated to over ₹90,000 per 10 grams, indicating a substantial return over the five-year period.
Silver: In 2020, silver prices in India averaged approximately ₹60,000 per kilogram. By March 2025, prices have risen to around ₹99,100 per kilogram, representing an approximate increase of 65% over the five-year period.
10-Year Performance (2015-2025):
Gold: Over the past decade, gold has consistently appreciated, serving as a hedge against inflation and economic downturns. From approximately ₹27,000 per 10 grams in 2015, gold prices have more than tripled by 2025.
Silver: In 2015, silver prices were approximately ₹37,000 per kilogram. By March 2025, with prices at ₹99,100 per kilogram, silver has appreciated by about 168% over the decade. Silver’s performance has been more volatile due to its industrial applications. Prices have fluctuated, but the overall trend shows significant appreciation over the decade.
15-Year Performance (2010-2025):
Gold: In 2010, gold was priced around ₹18,000 per 10 grams. By 2025, it has seen a fivefold increase, underscoring its long-term value retention and growth potential.
Silver: In 2010, silver prices averaged around ₹27,255 per kilogram. By March 2025, the price has increased to ₹99,100 per kilogram, marking an approximate 263% rise over the 15-year period.
Volatility and Risk:
Silver tends to exhibit higher volatility than gold due to its extensive industrial use, leading to more significant price fluctuations. Gold’s price movements are relatively stable, making it a preferred choice for conservative investors seeking long-term security.
Gold-Silver Ratio:
The gold-to-silver ratio is a valuable metric that indicates how many ounces of silver are equivalent in value to one ounce of gold. This ratio helps investors assess the relative value of these two precious metals and can influence investment strategies.
Historical Perspective:
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Long-Term Average: Since the 1970s, following the abandonment of the gold standard, the gold-to-silver ratio has averaged around 65:1.
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Recent Peaks: In April 2020, amid the onset of the COVID-19 pandemic, the ratio reached a historic high of over 125:1, indicating that gold was significantly more expensive relative to silver at that time. Investopedia
Current Ratio (as of March 2025):
As of March 2025, the gold-to-silver ratio stands at approximately 91:1, meaning one ounce of gold is equivalent in value to 91 ounces of silver. Barron’s
Interpretation for Investors:
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High Ratio: A higher ratio suggests that silver may be undervalued relative to gold, potentially indicating a buying opportunity for silver investors.
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Low Ratio: Conversely, a lower ratio implies that silver is relatively more expensive compared to gold, which might prompt investors to favor gold.
Conclusion:
Monitoring the gold-to-silver ratio provides valuable insights into the relative valuations of these precious metals. As of March 2025, the elevated ratio suggests that silver could be undervalued relative to gold, potentially presenting an opportunity for investors seeking diversification in precious metals.
Ankit Joshi
