Gold prices hovered around a 1-month low of ₹1,52,520 per 10 grams on Wednesday, October 7, 2026. Gold and silver are in a phase of consolidation in commodity markets. However, even then the gold-silver ratio has reached 68. This shows that, comparatively speaking, gold is still expensive. This means 2 things for a common investor. First, gold can get cheap. Another is that ‘silver’ may outperform gold in the coming days.
The gold-silver ratio has reached 68 in the international market. This means, to buy 1 ounce of gold, roughly 68 ounces of silver are being paid. This ratio is generally used to understand the relative strength of gold and silver. As this ratio increases, gold is considered stronger than silver.
The gold-silver ratio is not a price target. This only shows the ratio of the prices of the two metals. When the ratio goes up; So this means, gold is outperforming silver. Now if this comes down to it, silver is showing better performance than gold.
To put this in perspective, gold made a peak at around $5,595 an ounce in early 2026. It is trading around $4,138 in October. In short, there has already been a correction of about 26% since the peak. In such a case, one cannot expect gold prices to fall based on the gold-silver ratio.
One of gold’s biggest structural strengths is that central banks continue to be big buyers. Central banks bought around 289 tonnes of gold in the second quarter of 2026. Full year procurement is estimated to be between 700-900 tonnes. This figure is much higher than the pre-2022 average of around 400-500 tonnes. This is the reason why, despite the 26% correction, experts don’t think the long-term story of gold is over.
According to Ajay Kedia in this matter, supportive investment flows, geo-political uncertainty and limited supply in gold and silver are likely to see a further surge in Diwali and till the end of 2026. Gold is getting support from central bank hoarding, ETF inflows, reserve diversification and a possible fall in the rupee. Experts expect gold to touch ₹1,80,000 per 10 grams. This means, there can be a jump of around 18% from the reference price.
Along with this, he says, silver has more potential but volatility is also very high. Lack of continuous supply, limited flexibility in mine-supply and future demand from electronics, electric vehicles, power infrastructure and clean energy are the main reasons. Silver could touch around ₹3,00,000 per kg, indicating a potential upside of around 28%.
If the gold-silver ratio falls to 60-62 around 65-66, this will be beneficial for silver. Investors should build positions gradually, avoid leverage and maintain a diversified bullion allocation, with a comparatively higher allocation to silver for greater growth potential.
Note: The information provided here is for information only. TV9 Gujarati does not in any way advise investing or selling in shares, gold and silver, mutual funds and IPOs. Investing in the market involves potential risk. Always consult your financial advisor or market expert before investing.
₹ 29,418 crore ‘gold’ in the coffers in a single month, is something big going to happen in the global market?
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