Gold vs Silver: Do you have ₹ 1 lakh? Where to invest money in gold or silver, experts told the sure formula of earning

In difficult and uncertain times, Indian investors have always considered gold as the safest and most reliable investment. But amid the current tension in West Asia, Prime Minister Narendra Modi has appealed to the people of the country to postpone the purchase of gold for the time being. The aim of the government is to reduce the import of gold so that the increasing pressure on the country’s foreign exchange reserves can be reduced. Taking steps in this direction, the government has also increased the import duty on both gold and silver from 6% to 15%. After this big change, now a big question is arising in the minds of investors whether gold or silver will be better for long term investment? This question also becomes very important because if we look at the data of last one year, silver has given much higher returns than gold.

Who won the returns in the last one year?

If we look at the performance of the last one year, both the metals have pleased the investors in terms of returns, but silver has gone far ahead. In the last one year, while gold has given excellent returns of about 47% to its investors, silver has surprised everyone by giving very strong and historic returns of about 147%. However, market experts clearly say that no major investment decision should be taken just by looking at the old return figures. While gold has always been considered a safe and stable investment, silver is also called the ‘Devil’s Metal’ in the market because its price volatility is very high and very fast.

After all, why did silver suddenly become the first choice of investors?

There is a big reason behind this stormy rise in silver prices. Silver is not only a precious jewelery metal, but its industrial use is increasing very rapidly. Nowadays, the demand for silver in solar panels, electric vehicles (EV) and modern electronics sectors is skyrocketing across the world. According to experts, due to this strong industrial demand, silver has left gold far behind in recent times in terms of performance.

What does the mathematics of gold-silver ratio say?

Market experts use the Gold-Silver Ratio (GSR) to understand the movement of gold and silver. This ratio tells us how many ounces of silver you will need to buy 1 ounce of gold. At the beginning of the year 2026, this ratio was at the level of 107, which has now come down to around 55 with a huge decline. The simple and clear meaning of this decline is that in recent months, the prices of silver have seen much more speed and rise than that of gold. However, along with this, experts are also warning that after such a big and sharp increase, silver can also reach the overbought zone (excessive buying area) in the short term, from where there is a possibility of a slight decline.

Where and how to invest ₹1 lakh?

If you have Rs 1 lakh to invest at this time, then experts have suggested an excellent formula for this. According to experts, this investment mathematics completely depends on your risk taking ability. Those who want a completely safe investment and do not want to take much risk, they can invest 70% of their Rs 1 lakh in gold and 30% in silver. On the other hand, investors who are willing to take a little more market risk can create a balanced portfolio of 50% gold and 50% silver.

How much should you keep in your total portfolio?

The general advice of experts is that any person should keep only 10 to 15% of his total investment in these precious metals. Even within this fixed portion, it is considered most correct and sensible to keep the contribution of silver at 5 to 10%. This keeps your portfolio safe and you also get better returns.

Is it beneficial to buy gold at this time?

Despite all the changes, gold still remains the safest form of investment across the world, because central banks around the world are continuously buying gold as a safe backup. On the other hand, there is every possibility of a big rise in silver in the future, but the amount of risk associated with it is also equally high. The final conclusion of the experts is that gold provides stability and security to your portfolio in the long term, whereas silver can earn you very fast returns. Therefore, it is wise at this time to take the investment step only by mixing both the metals in the right proportion.