Gold vs Silver Investment: Which is Better in 2025?

When it comes to investing, gold and silver have always been the first choice of Indian investors. Both these precious metals have special significance in our country not only from an economic point of view but also from a cultural and religious point of view. Be it a wedding, a special festival, or the intention to keep a lifetime's savings safe, both gold and silver are considered a symbol of prosperity and stability.

But in today's time, when volatility is increasing in the market and inflation is at its peak, this question has become even more important for investors: Gold vs Silver: Which option is better and more beneficial?

Before finding the answer to this question, let's take a look at the recent prices, which reflect the increasing demand and value of these metals:

• Gold made a new record on April 16, when the price of 10 grams of 24-carat gold reached Rs. 94,579. It came with a gain of Rs. 1,477 and has registered a gain of Rs. 18,417 so far this year. According to market experts, gold can go up to Rs. 1.10 lakh per 10 grams by the end of the year.

• Talking about silver, 1 kg of silver has become costlier by Rs. 373 and has reached Rs. 96,575. Just a few days ago, on March 28, silver had reached the level of Rs. 100,934 per kg.

It is clear from these figures that both the metals are moving fast and giving good returns to investors. But their speed, use, demand, and risk are different, so it is important to analyze them in depth to make the right investment decision.

Gold vs Silver - Historical Significance

The history of gold and silver is thousands of years old. These are not just metals but have been a symbol of wealth, power, and prosperity for entire civilizations. In ancient times, when banks did not exist, people used to store their wealth in the form of gold and silver. This is why these metals are called 'store of value,' i.e., a medium to protect value.

Gold has been used as currency in many countries. There was a financial system called the Gold Standard in which the value of the currency of countries was based on the gold they had. At the same time, silver was also adopted as the 'Silver Standard' in many places, especially in trade and transactions.

In India, gold and silver also have very deep religious and cultural significance. At festivals, weddings, and special occasions, they are used not only as jewelry but also as auspicious signs and investments.

Even today, whether there is an economic crisis or a market crash, people first turn to gold and silver, as these retain their value over time and are considered safe investments.

Gold vs Silver Returns - Performance Over the Years

If you are wondering whether gold or silver is better, the best way is to look at the silver vs gold returns in the last 10 years in India.

Both metals have performed well at different times in India. Below is a table showing the average returns from 2014 to 2024:

(Note: 2024 returns are estimated and taken from various sources.)

• Gold has given more stable and consistent returns. It is considered a safer investment.

• Silver has given very fast growth in some years (like 2016 and 2020), but its returns are more volatile.

• If you want to take less risk then gold is better. But if you want more returns by taking a little risk, then silver can be a good option.

• Gold is mostly used in investment and jewellery.

• Silver is also used in industrial demand (like solar panels, electronics), due to which its price moves more.

Gold vs Silver – The Truth About Supply and Demand

To understand the prices of gold and silver, first we need to understand how their supply (production) and demand work.

Supply and demand of gold : Gold production is limited to only a few countries around the world, such as China, Australia and Russia. Its supply is very limited, so its prices often remain stable.

Gold is mainly in demand for jewelry, investment (such as gold ETFs, gold coins) and storage by central banks. Its demand increases rapidly during weddings and festivals in countries like India and China.

Supply and demand of silver : The supply of silver is slightly higher than that of gold, but its demand is not limited to jewelry.A large part of silver is used in the industrial sector - such as electronics, mobiles, solar panels, medical equipment, etc. Therefore, when there is growth in technology or industry, the demand for silver also increases.

Supply-demand effect on prices : Gold prices remain relatively stable because its demand is permanent. On the other hand, silver prices see more volatility because its industrial demand can change rapidly.

This means that silver can give more profit or loss in the short term, while gold is considered a safe and stable investment for the long term.

Silver vs Gold Investment - Price Comparison and Volatility

When it comes to investing, the first question is: what is the price and which fluctuates more?

Talking about current prices: On April 16, 2025, gold set a new record and 10 grams of 24 carat gold reached Rs. 94,579. At the same time, the price of 1 kg of silver was recorded at Rs. 96,575.

Although silver seems to be expensive, remember that gold is sold in 10 grams and silver in kilos so the price per gram of gold in investing is quite high.

What is the Gold-to-Silver Ratio?

It is a ratio that shows how much silver is needed to buy one gram of gold. For example, if this ratio is 80, it means that the price of 1 gram of gold is equal to 80 grams of silver. This ratio tells how much the value of both metals is changing over time.

Which one has more volatility?

Silver prices usually fluctuate more than gold. This is because of its industrial demand, which changes rapidly according to the market conditions.

Performance in bull and bear markets

• Bull market (when the market is going up): Silver rises rapidly and gives better returns.

• Bear market (when the market is falling down): Gold is a safer option as it maintains stability.

If you want a stable and safe investment, then gold is better. But if you want higher returns with little risk, then silver can surprise you.

Gold vs Silver – Important Things to Know Before You Invest

Gold and silver are not just precious in appearance, they can also play an important role in securing your financial future. But before investing, it is very important to understand some important things:

Liquidity: Both gold and silver can be easily sold in the market, but gold is more liquid. It is sold immediately in almost every city across the country, while the sale of silver can sometimes be a bit slow, especially in large quantities.

Storage and Insurance: Gold is expensive but it can be kept safe in less space. Silver comes in bulk, so the cost of storage space and security is high. If you invest a large amount in these metals, then it becomes necessary to take a bank locker or insurance.

Affordability: If you are starting to invest and do not have a large amount, then silver is a great option. You get more units at a lower price, making it easier to increase your investment gradually.

Portfolio Diversification: No savvy investor ever invests all his money in one place.

• Gold is known for stability and safety – it remains strong even during an economic recession or market crash.

• Silver is volatile but can give higher returns in a bullish market. Therefore, investing in both is good for a balanced portfolio.

Taxation in India: In India, both gold and silver are taxed as capital gains tax.

• If you sell them before 3 years, then Short-Term Capital Gain (STCG) is levied on it, which will be according to your income tax slab.

• If you sell after 3 years, then Long-Term Capital Gain (LTCG) will be levied, which includes 20% tax + indexation benefit.

Gold vs Silver – Reliable Assets During Inflation and Recession

When inflation rises in the country and the value of the rupee falls, most investment options become unstable. At such times, gold and silver are considered 'safe haven', but among these, gold proves to be more reliable for certain reasons.

Inflation Hedge: Gold is traditionally considered the safest investment in times of inflation. When the purchasing power of the rupee decreases, the price of gold increases - this is why it is called an inflation hedge. Therefore, people invest in gold to keep their savings safe during inflation.

Economic crisis and the role of silver: Silver also attracts investors' attention during economic recession, but it is used more in the industrial sector. Therefore, its demand depends on the economic conditions. Nevertheless, it is an attractive option for short-term trading due to being cheaper and more volatile than gold.

Central Banks and Gold Reserves: Central banks around the world (like India's RBI) keep most of their foreign reserves in gold. This is because of gold's stability and international acceptance. Silver, in this case, is not considered as reliable.

So when there is uncertainty in the market, there is a war, or the currency is weakening - gold becomes a strong shield for investors.

Difference Between Gold and Silver

Let’s understand what is the difference between gold and silver in the table below:

Where to Invest in Gold and Silver Easily?

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Conclusion

Both gold and silver are historically valuable metals and are popular investment options. Both have their own characteristics and advantages, so it would not be right to call one of them "the best". Investment choice always depends on the individual's financial situation, goals and risk appetite. If your objective is long-term security, stability and protection from the effects of inflation, then gold can be a strong option. It maintains its shine even in times of economic instability and its liquidity i.e. its ability to convert into cash is also high. Apart from this, it is also kept as a reserve by central banks on a large scale, which further increases its credibility.

On the other hand, if you want to start investing with a limited budget and can tolerate some price volatility, then silver can be a viable option for you. Silver is not only a cheap investment option, but due to industrial demand, it also has the potential for high returns in the short term.

The best strategy is to invest in a balanced manner in both metals. This will not only diversify your portfolio but also reduce risk in different economic conditions. Ultimately, it is important to keep in mind your financial goals, time horizon and risk profile before making any investment decision.

FAQs

Q. Which is a better investment in 2025: Gold or Silver?

Both gold and silver are good options in 2025. If you want stable and safe returns then gold is the right choice. But if you expect faster returns by taking a little risk, then silver can also be a smart choice.

Q. What are the historical returns of gold and silver in India?

In the last 10 years, gold has given an average annual return of up to 8%, while silver has given about 6-7%. In some years, silver has even performed better than gold, but it has more fluctuations.

Q. Is silver more volatile than gold?

Yes, silver has higher volatility than gold because it has more industrial use. This means that its prices can fluctuate rapidly.

Q. Can I invest in silver and gold digitally in India?

Absolutely! You can easily invest in both via digital gold, gold ETFs, silver ETFs or mutual funds.

Q. What is the key difference between gold and silver as investments?

Gold is more stable and expensive, while silver is affordable but has more fluctuations. Gold is mainly used in investment and jewellery, while silver is also used in industry.

Q. Is investing in gold and silver tax-free in India?

No, when you sell gold or silver and make a profit, capital gains tax is applicable on it. This can be a short term or long term tax depending on the holding period.