New Delhi: Silver’s exceptional rally of over 200 per cent in the last 12 months sharply outperforming gold’s 80 per cent surge has created a condition in favour of yellow metal in the near term, a new report has said. The report from Motilal Oswal Financial Services Ltd. (MOFSL) said that the current gold–silver ratio favours the yellow metal after silver’s outsized run. The sharp outperformance of silver over has led to a "significant compression in the gold–silver ratio, which has fallen from pandemic highs of 127 to around 50 at the start of 2026," the report mentioned.
This reset suggests that while the long-term outlook for precious metals remains constructive, the near-term risk-reward equation may now be shifting in favour of gold after silver’s outsized run. “While we remain positive on both metals and silver continues to have long-term upside backed by industrial demand and tight physical market conditions, the recent rally has also increased near-term volatility," said Navneet Damani, Head of Research Commodities and Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd.
Damani maintained that in this phase of silver's sharp outperformance, a higher allocation to gold can help manage fluctuations while staying invested in precious metals. Silver showed more volatility with sharper price swings, while gold continues to offer relatively better stability—making it a preferred near-term hedge in uncertain market conditions, the report said. Silver's sharp surge of over 200 per cent, from Rs 60,000 to Rs 3,20,000, could lead to a phase of consolidation at elevated levels or rebalancing by market participants becomes more likely.
The brokerage emphasised that the view is not a negative call on silver, but a risk-managed reallocation strategy after an aggressive up move. Global silver ETFs saw outflows of over 3 million ounces in 2026, while gold ETFs experienced comparatively steadier inflows. Global liquidity is expanding, the report said, citing an increase of money supply in the US and China, with the latter's money supply growing over 8 per cent YoY — conditions that historically boost demand for safe‑haven assets such as gold.
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