Golden-Silver Relationship Today: Should you adopt 'Silver, Buy Gold' strategy? | Einsmark news

Both gold and silver saw impressive events in the current calendar year, which achieved double digits. While the trade war and the hope of monetary relief are driving the Bullion to high level, the rally in silver prices comes amid the growing industrial demand for solar and electronic industries. In 2025, MCX gold prices rose 18% to a record high level of £ 91,696 per 10 grams, which touched the yellow metal today (April 3), as the latest round of tariff setup by US President Donald Trump further strengthened the demand for safe Haven. Donald Trump announced reciprocal rates at 180 countries, further increasing the global trading tension. Trump has unveiled new duties on trade partners, including India, and used rates as a bargaining tool to strive lower duties on US goods. While this move played well for bullying investors, Silver did not see a similar fate. Silver futures on the MCX fell 3% to £ 97,080 per kilogram, as the same rates are expected to hamper industrial demand, in which silver has used a wide. Despite this fall, the white metal achieved 11% on a year-to-year (YTD) base and achieved the prestigious £ 1,00,000 mark. “Silver’s fundamental appearance is impressive, but the fear of an economic slowdown as a result of the trade war can affect industrial demand of silver and cause a short-term correction in the price. Question of secure quality, strong central bank purchases and robust ETF inflows will continue to support gold prices,” said AnuJ Gupta, Head of Commodity & Currency. Time to sell silver and buy gold? Even the rising gold silver ratio indicates a growing cautious sentiment among market participants, which drives the demand for gold. This relationship is used by investors to determine the relative value between gold and silver. It measures how many ounces of silver is needed to buy one gram of gold. Often, market experts use it to determine the prevailing investor sentiment. A higher ratio, indicating the demand for gold, means that investors become more risk acceleration 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 has reached a three-year peak in the international market, and analysts believe it could soon re-test the 100 and 105 levels. They expect Silver to remain muted and order you to buy gold above silver. “We believe that silver prices will remain under pressure in the short term so that 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 profits at the 100 level and hold a stop loss at 88,” Gupta said. If both gold and silver rise, but the relationship is still increased, it constantly reflects underperformance through silver. This divergence may indicate an imminent correction, says Ajay Kedia, director of Kedia Advisory. He advised investors to stay careful, as silver could crash sharply if the momentum did not sustain. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. Business NewsMarketsCommoditiesGold-Silver Relationship Today: Should you adopt ‘Sell Silver, Buy Gold’ strategy? More less