A major question that investors and precious metals enthusiasts are considering this festive season is whether it is better to buy gold now, amid Dhanteras, the Diwali celebrations, and daily price rallies, or whether silver offers better value in the current market cycle. The gold-silver ratio (GSR) is currently hovering around 84. Many people are debating whether to buy now or hold out for a potential decline as bullion prices rise in anticipation of the festive rush.
Investors Face a Conundrum as the Gold-Silver Ratio Approaches 84 During This Diwali Season
The gold-to-silver ratio, which indicates how many ounces of silver are needed to purchase one ounce of gold, has historically remained between 50 and 60. That figure is around 84 at the moment. This implies that gold is presently more costly than normal in relation to silver since it takes a lot more silver to purchase the same quantity of gold. Simply put, this might indicate that silver is now a great deal or that gold is expensive.
Is Now the Correct Time to Purchase Gold?
Gold has always been considered a safe-haven investment, particularly in times of monetary policy changes, growing geopolitical tensions, and economic instability. Those variables are true in 2025. When the economy is unstable and currencies are depreciating, yellow metal does well.
Real interest rates are still low, central bank purchases of gold are still supporting prices, and global geopolitical risks—from trade disputes between the United States and China to wars in Europe and the Middle East—are driving investors into wealth-preserving assets.
But given how stretched the gold-to-silver ratio is, many analysts think gold’s ability to generate large short-term gains may be limited. Gold will not increase as a result of this. It simply indicates that, according to experts, it may not provide the highest relative value when compared to silver.
We must think about our goals before deciding if now is the ideal moment to purchase gold. Due to central bank demand, low real interest rates, and geopolitical threats, gold continues to be a solid safe-haven asset if stability and wealth preservation are the key objectives. But given the high GSR, there could not be much room for large gold gains in the foreseeable future, according to Ross Maxwell, Global Strategy Lead at VT Markets.
Is Silver Currently a Better Investment Than Gold? Recognize the Mean Reversion Strategy
Silver has many appealing qualities. Compared to its yellow equivalent, silver seems to be much discounted, with a GSR of 84. For investors who think that the ratio’s “mean reversion” is real, this might be a unique chance.
Silver is an important industrial metal in addition to being a precious metal. It is attractive as a store of wealth and as a growth asset associated with the clean energy transition because of the increasing demand from the solar energy industry, electronics, and electric cars.
One commodities expert predicted that the demand for silver will rise as the globe decarbonizes and electrifies. “This strengthens its investment case by providing a strong industrial tailwind.”
Where Should You Invest This Dhanteras/Diwali: Gold or Silver?
“In the present climate, it would make sense to purchase or hold onto some gold for stability while increasing exposure to and modestly weighting silver for possible upside. By doing this, you may strike a balance between the security of gold and the potential for silver price increase and a return to the historical average gold-silver ratio, according to commodities expert Maxwell.
The choice of whether to purchase gold or silver is mostly based on your financial goals. Gold is still a reliable option if you want to preserve your money over the long run and maintain the security of your portfolio. Silver, however, can provide a more alluring possibility at this time if you are searching for upside potential and think the gold-silver ratio will return to its historical normal.