Gold to silver ratio slides from 110 to 65 in 2025 amid steep rise in white metal prices. Should you continue buying base metals?

Gold and silver

• Silver surged 170% in 2025, far outpacing gold's 76% rise amid tight supply
• Copper prices hit $13,000/tonne, up 40% in 2025; aluminium and zinc also gained
• Gold and silver expected to remain strategic assets in 2026 with tight supply

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Precious metals had an excellent run-up in 2025, with silver rising nearly 170 percent far outperforming gold’s historic 76 percent rise. The gold-silver ratio also shows a decline from 110 to the recent low of 65, indicating that the white metal rose far faster than gold, as per the MOFSL Commodities Review 2025 and Preview 2026 report.

The falling ratio also signalled a tightening physical supply of precious metals, with gold staying constrained with limited mine expansion and scrap supply proving relatively inelastic even at elevated prices, while silver experienced periods of rare backwardation, signalling acute physical tightness during the year.

While silver benefited from dual advantage in 2025- from robust industrial demand linked to the energy transition, solar installations, electrification, and technology investments- gold cashed in on safe-haven flows amid geopolitical and policy uncertainty.

“The performance of precious metals in 2025 reflects a clear shift in investor behaviour. Gold has evolved beyond a cyclical hedge into a strategic reserve asset, supported by sustained central-bank buying, currency volatility, and persistent macro uncertainty,” said Manav Modi, Analyst (Commodities), Motilal Oswal Financial Services Ltd.

There is also an unprecedented surge of domestic gold and silver ETFs, with the asset under management (AUM) registering a rise of more than 150 percent in 2025. The ETF flows turned decisively positive in the second half of the year, signalling renewed investor participation after a prolonged phase of outflows.

The report stated that the financial participation played a critical role in reinforcing commodity price trends during 2025. Currency movements added further support, with a weaker dollar index and a depreciating rupee enhancing domestic commodity returns.

Base metals: copper takes the lead

Copper also saw a historic rise in prices to nearly $13,000 per tonne, representing a 40 percent year-on-year gain in 2025. Global refined copper demand is forecast to rise by more than 2.1 percent to 28.7 million tonnes in 2026.

During the period, aluminium and zinc gained 17 percent and 5 percent, respectively. The report predicts that base metals may see phases of consolidation, offering selective medium-term opportunities, while energy markets are expected to remain sensitive to supply-demand adjustments.

“While base metals and energy markets reflected divergent fundamentals in 2025, structural demand drivers, particularly electrification and infrastructure, continue to underpin select metals, creating opportunities during periods of consolidation,” said Navneet Damani, Head of Research (Commodities), MOFSL.

Read more: Copper prices jump nearly 60% in a year: How can retail investors participate?

Gold and Silver Outlook

The report predicts that gold and silver will retain their strategic relevance in early 2026, supported by continued central-bank and investor demand, limited mine supply growth, and relatively inelastic scrap flows. Physical market tightness is therefore expected to persist, reinforcing precious metals as long-term portfolio anchors.

Looking ahead, the report’s outlook suggests consolidation rather than reversal, meaning that the price movement of precious metals is expected to pause or move sideways, and not fall sharply, as investors are increasingly viewing gold and silver as strategic assets. It cautions investors that the ride in 2026 may not be as smooth as in 2025. So, continue to maintain a buy on dips stance for both gold and silver.

“As we move into 2026, commodities are transitioning from momentum-driven trades to strategically allocated assets. While volatility is likely to remain a feature of the market, structural demand, currency dynamics, and policy uncertainty continue to reinforce the role of commodities—particularly precious metals—as core portfolio hedges in an increasingly fragmented global macro environment,” the report stated.