Silver vs Gold in India: Which performed better lately

In the last few years, bullion has found its place back in the limelight on Dalal Street. In India, Gold prices have hit new records, while Silver has risen even higher, generating returns for investors via exchange traded funds (ETFs), Fund of Funds (FoFs), and other commodity-linked products. The fluctuations have led to investors wondering about the comparative performance of these two metals from a recent and long-term perspective.

Why Gold and Silver prices have risen

Indian Gold prices rose from around ₹65,330 per 10g in 2023 to roughly ₹77,913 in 2024, before moving to an average level close to ₹1,57,400 per 10g by early 2026. Silver prices increased even more dramatically, from about ₹78,600 per kg in 2023 to ₹95,700 in 2024, and further to approximately ₹3,30,000 per kg by early 2026. This sharp appreciation has revived the debate around Silver versus Gold as an investment choice.

Several structural factors underpin this rally. The prices for assets such as Gold and Silver have increased due expecting interest rate cuts by the US Federal reserve and other central banks. A decreasing Rupee has also raised the domestic price  of imported bullion. The continuous geographical tensions and increasing inflation rate have also sustained demand for precious metals as  long-term investments. 

Expert views on Gold and Silver at current levels

In India, market experts are tracking Gold and Silver. They are emphasising on the different roles played by each metal. Gold is usually viewed as a stable investment and offers capital preservation with lower volatility. Silver is also considered a safe asset and tends to outperform during the periods of industrial demand. However, Silver is not as stable as gold and has higher price swings. 

Recent performance data reflects this distinction. Silver ETFs and fund-of-funds in India have delivered high double-digit and, in some cases, triple-digit returns over one-year periods, driven by the sharp rise in Silver prices. In comparison, Gold ETFs and Gold ETF fund-of-funds have recorded strong but more moderate gains. Analysts consistently caution that these figures are backward-looking and that Silver’s higher volatility can lead to sharper interim drawdowns during unfavourable phases.

Long-term importance of Gold and Silver

From an Indian perspective, Gold and Silver serve purposes beyond short-term price movements. Gold is well-known to be a hedge against inflation and depreciation in currency throughout the years, and will continue to maintain its purchasing power for the long term. While silver has experienced similar returns from compounding, the price of silver has gone through many boom and bust cycles during this time as well.

There are now several methods of investing in gold through exchange-traded funds (ETFs), bank- or government-issued gold bonds (also known as sovereign gold bonds), and ETFs for silver. This gives investors easy access to physical bullion without the worry of storage and purity. Gold-backed investments provide liquidity and collateral advantages that strengthen the position of these assets on a household’s balance sheet.

What long-term data shows

Historical data illustrates the contrast clearly. The price of 24-carat Gold in India was about ₹540 per 10g in 1975 and stands near ₹1,57,400 per 10g in early 2026. Silver prices, based on consistent data from 1981, rose from roughly ₹2,715 per kg to around ₹3,30,000 per kg over the same period. While both metals have compounded meaningfully, Gold’s rise has been steadier, whereas Silver has delivered sharp bursts of outperformance interspersed with prolonged consolidations.

Conclusion

Recent data shows that Silver has outpaced Gold over the last couple of years in percentage terms, particularly through listed ETFs, albeit with far higher volatility. Over longer horizons stretching back towards 1975, Gold’s strength as a store of value and inflation hedge becomes more evident. As a result, the question of whether Gold or Silver is the better investment cannot be answered in isolation. Professionals typically frame the choice within the context of diversification, time horizon and risk tolerance, rather than recent returns alone.