Silver surged 75% in Jan 2026, beating gold. Learn why rising volatility is now shifting investor preference back to gold as the steadier safe-haven asset.
Silver Surges 75%, Outshining Gold in Early 2026 (Image: File)
In January alone, silver surged by 75%, outperforming gold in early 2026. However, because to its increasing volatility, investors are now turning back to gold as the more stable safe-haven asset.
The white metal, long dubbed "poor man's gold," decisively stepped out of its shadow by crossing the Rs 4 lakh per kg mark in India. However, analysts note the nature of the rally is changing, making selectivity between the two precious metals crucial.
Silver has been the star performer of 2026 so far, skyrocketing 75% in January and outpacing gold's strong gains. However, in the face of continuous global uncertainty, gold is now seen by investors as the more reliable anchor due to growing volatility and squeezed values.
The surge in both metals is fueled by global uncertainty, a weakening U.S. dollar, expectations of interest rate cuts, and geopolitical tensions. New trade threats from US President Donald Trump, such as the potential for more tariffs on allies like South Korea and Canada, have raised demand for safe-haven assets.
While both metals benefit from the same macro forces, their behavior has diverged. Silver's rally has been far more explosive and volatile. "Gold remains suitable for most investors due to its steadier nature, while silver is best left to those who understand and can tolerate violent volatility," said Jigar Trivedi of IndusInd Securities. He notes silver has absorbed much positive news and future gains may come with sharp swings.
Brokerages including Motilal Oswal Financial Services say silver’s fast rally has changed the near-term risk-reward balance, making gold look relatively better placed. One key sign is the fall in the gold-silver ratio to about 50, from pandemic-era highs near 127, showing much of silver’s catch-up move has already played out. Investor flows mirror this, as global silver ETFs see outflows, while gold ETFs draw steadier investor interest now.
IndusInd Securities expects COMEX gold between $4,800-$5,500/oz and MCX gold at Rs 1,45,000-1,75,000/10gms. For silver, they see COMEX at $95-$130/oz and MCX at Rs 3,00,000-4,00,000/kg. Given silver's sharp rally, analysts suggest waiting for a correction before adding fresh exposure, while gold's slower, steadier climb makes it a more stable choice at current levels for portfolio anchoring.
A: In January 2026, silver gained around 75%, exceeding gold by a substantial margin.
A: Silver's rally has become extremely volatile, compressing the gold-silver ratio and altering the near-term risk-reward balance in favor of gold's stability.
A: It determines the quantity of silver required to acquire one ounce of gold. Silver has performed exceptionally well, as evidenced by a ratio close to 50, down from above 120.
A: Analysts advise caution, saying that because of stretched valuations and high volatility, it could be wise to wait for a correction.
Disclaimer: This article is intended solely for information and education purposes. The views and opinions expressed are those of individual analysts or brokerage firms and do not reflect the official stance of TSG.
