Gold’s Momentum May Slow Down Due to Easing Political Tensions… Silver Might Get a Chance to Shine!

New Delhi: Gold prices have seen a significant surge this year, but silver has lagged behind in this race. However, experts believe that the situation might soon change. With political tensions easing around the world, the momentum of gold prices may slow down, giving silver an opportunity to shine. New market conditions and growing industrial demand could push silver prices to new heights.

Favorable Conditions for Silver

Several major global developments have taken place. Trade deals between India and the UK, agreements between the US and China, and signs of de-escalation in conflicts between Ukraine-Russia and India-Pakistan suggest an easing of tensions. According to experts, these changes may reduce fears of a global economic slowdown and boost business activities. This, in turn, would increase demand for silver, especially in solar panels and green energy equipment. Unlike gold, silver has more industrial applications, which could drive its price upward in the near future.

Gold-Silver Ratio Imbalanced

Typically, gold is 40 to 60 times more expensive than silver. However, this gap has now widened to as much as 100 times. This situation mirrors the conditions during the COVID period in March 2020. Market analysts say this imbalance indicates a possible uptrend in silver. Historically, in the next rally, silver has the potential to outperform gold.

Long-Term Sparkle for Silver

Experts believe that the demand for silver in sectors like solar energy will remain strong for a long time. China is now relying more on wind and solar energy instead of coal. In April, China announced for the first time that its solar and wind energy capacity had surpassed coal-based energy.

Silver’s Profit Potential Remains High

So far this year, gold has risen by 25.1%, while silver is up only 13.5%. But last year, silver outperformed gold—silver delivered a 40% return in 2024, compared to gold’s 28%. Experts claim that in the next 12–15 months, silver could reach ₹1,25,000 per kilogram.

Gold Falls by ₹650, Silver Also Drops

Amid a weak trend in global markets, gold prices in the national capital fell by ₹650 on Wednesday, settling at ₹96,850 per 10 grams. Meanwhile, silver prices dropped for the third consecutive day and declined by ₹1,450, bringing the price down to ₹98,000 per kilogram (inclusive of all taxes), from its previous close of ₹99,450 per kilogram.

Experts stated that gold prices are falling due to easing trade tensions, as major economies are entering into trade agreements with the US. In global markets, the spot price of gold declined by $20.65, settling at $3,229.64 per ounce.