Gold and Silver have created history. Prices of gold and silver have breached all previous all-time highs to create a fresh new all-time high level. On January 23, 2025, Gold trades close to $5,000, while Silver trades at $100.
Silver prices increased from $50 in November 2025 to over $100 by January 23, 2026, marking a 100% rise in two months.
The fresh triggers behind gold and silver’s rally seem to be the lingering geopolitical risks and a weaker dollar. Just weeks after announcing a year-end estimate of $4,900 per ounce, Goldman Sachs said that it has raised its December 2026 price target to $5,400 per ounce.
On Friday, in the Indian markets, MCX Gold (05FEB2026 contracts) trades at Rs 1,57,237 per 10 grams, while the gold spot price is Rs 1,58,500. MCX Silver (05MAR2026 contracts) trades at Rs 3,32,842 per 1 KG, while the silver spot price is Rs 3,34,210.
Fresh Triggers
President Trump has ruled out military action to take control of Greenland, but he continues to press EU states to ‘handover’ the region or face higher tariffs. Such concerns appear to be disrupting the geopolitical situation, prompting investors to seek safe-haven assets such as gold and silver.
Also, there are growing concerns that Europe could weaponize its substantial US asset holdings, which could have a negative impact on the US dollar. The tariff threat has led analysts, including Deutsche Bank, to question whether European investors might offload U.S. assets. Europe accounted for 80% of foreign buying of U.S. Treasuries from April to November last year, according to portfolio data tracked by Citi.
Meanwhile, the US Federal Reserve is widely expected to keep interest rates unchanged next week, supported by signs of a resilient economy. Still, markets continue to price in two potential rate cuts later this year. Any rate cut will potentially boost gold and silver prices.
Gold-Silver Ratio
With Gold at $5,000 and Silver trading at $100, the ‘gold-to-silver’ ratio comes to 50. In January 2025, the gold-to-silver ratio was 100. The crash in the gold-to-silver ratio from 100 to 50 was largely due to a spike in silver prices as compared to gold. In 2025, silver gained over 150% as against gold’s 65% return.
Existing investors can consider what Tapan Patel, Fund Manager-Commodities at Tata Asset Management, suggests: “For those already invested, the decision to hold or rebalance should be guided by the Gold/Silver ratio. As the ratio compresses toward the 50 mark—having retraced from the highs of 100 seen in 2025—investors might consider booking partial profits to reallocate into more stable assets like Gold ETFs, ensuring the portfolio remains aligned with their long-term risk appetite.”
Apart from the new triggers, the causes for the bull run in gold and silver prices since 2022 remain relevant today. From supply constraints, particularly in silver, to central bank demand for the yellow metal, to silver’s inclusion on the US key metals list, and more, the tailwinds that existed in 2025 are relevant today. However, investors need to be aware that big corrections can happen in any of these two metals. New investors should have long term plan to invest a portion of their portfolio in gold and silver.