What is the story about?
In the first month of 2026, silver had a splendid run, surging nearly 75% and also crossing the Rs 4 lakh per kg mark in January. Silver, often referred
to as "poor man's gold," is also giving the yellow metal a run for its money, making investors reassess their investment plans. Silver has decisively stepped out of gold’s shadow in early 2026. Both precious metals have posted strong gains, but the way they are moving, and the risks involved, are starting to look very different. For investors, the rally is no longer about buying bullion blindly; it’s about choosing wisely. Gold has already had a stellar run, climbing nearly 60% in 2025 and adding another 20% so far in 2026. Silver, however, has been far more explosive, surging sharply and grabbing market attention. While both metals are benefiting from similar global forces, analysts say the nature of the rally has shifted, making selectivity crucial. Also Read - Gold Rate Today (January 29, 2026) - Check 24K, 22K & 18K Prices In Delhi, Mumbai, Chennai, Bangalore, Hyderabad And Other Major Cities
What's Behind Gold And Silver Rally?
The surge in gold and silver prices is being driven largely by global uncertainty. A weakening US dollar, expectations of interest rate cuts, and rising geopolitical tensions have pushed investors toward safe-haven assets.
Fresh trade-related threats from US President Donald Trump, including higher tariffs on Canada and South Korea across sectors such as automobiles, lumber and pharmaceuticals, have added to the unease. Alongside broader global flashpoints, these developments have reinforced demand for bullion.
But while gold and silver are responding to the same triggers, their behaviour is starting to diverge.
Silver’s strength comes with sharp swings
Jigar Trivedi of IndusInd Securities told ET that gold remains the more suitable option for most investors due to its relatively steady nature, while silver is best left to those who understand and can tolerate sharp volatility.
“Gold remains suitable for most investors due to its steadier nature, while silver is best left to those who understand and can tolerate violent volatility,” Trivedi told the news outlet.
According to him, silver has already absorbed a large amount of positive news. While upside potential still exists, it is likely to come with sudden and sharp price swings. Gold, on the other hand, tends to perform steadily during uncertain times, and the current rally may still have room to run.
Trivedi pointed to supportive macro factors such as expectations of US Federal Reserve rate cuts, persistently negative real yields, and central banks diversifying reserves as key pillars supporting prices. He also flagged tightening physical supply, especially in silver, and strong industrial demand as longer-term drivers.
“At present, it is apt to say there is still meaningful upside,” Trivedi said, adding that while a correction cannot be ruled out, there are no immediate triggers for one.
IndusInd Securities expects Comex gold prices to trade between $4,800 and $5,500 per ounce, with MCX gold seen in the range of Rs 1,45,000 to Rs 1,75,000 per 10 grams. For silver, the brokerage sees Comex prices between $95 and $130 per ounce, while MCX silver could move between Rs 3,00,000 and Rs 4,00,000 per kg.
Given silver’s sharp rally, Trivedi believes waiting for a correction may be prudent before adding fresh exposure, while gold’s slower, steadier climb makes it a more stable choice at current levels.
Risk-reward balance shifting back toward gold
Motilal Oswal Financial Services echoed a similar view, noting that silver’s rapid rise has altered the near-term risk-reward equation. The brokerage said gold now appears relatively better positioned as global uncertainty increases.
While it remains positive on silver’s long-term structural outlook, supported by industrial demand and supply constraints, Motilal Oswal warned that the near-term setup looks increasingly stretched after the rally.
The firm highlighted that silver’s volatility has expanded, with wider daily price swings, while gold continues to trade in a more stable trend. This, it said, improves gold’s appeal for investors focused on risk management. Motilal Oswal also flagged tightness in physical silver markets, cautioning that elevated premiums could be a sign of stretched pricing.
Another sign that silver’s outperformance may be nearing a pause is the compression in the gold-silver ratio. Motilal Oswal said the ratio has fallen to around 50 at the start of 2026, down from pandemic-era highs near 127, suggesting that much of silver’s catch-up trade has already played out.
Investor flows also reflect this shift. Global silver exchange-traded funds have seen outflows of more than 3 million ounces since the start of 2026, even as prices remain high. In contrast, global gold ETFs have continued to attract steadier inflows, indicating a rotation toward safer assets.
Silver may be the standout performer of 2026 so far, but gold is increasingly being seen as the steadier anchor for portfolios navigating a volatile global environment. As the rally matures, the message from experts is clear: silver can shine, but gold still provides stability when uncertainty dominates.
(Disclaimer: This article is meant solely for informational and educational purposes. The views and opinions expressed are those of individual analysts or brokerage firms and do not reflect the stance of Times Now. Readers are advised to consult certified financial experts before making any investment decisions.)
