Gold vs Silver: Which Asset Won the Last 42 Years in India? (1983–2026) Trending
Gold vs Silver: Which Asset Won the Last 42 Years in India? (1983–2026) Trending
Data Update : 04 February 2026
In India, gold and silver are more than metals – they are emotion, heritage, and insurance. For millions, they represent stability in uncertain times and beauty in moments of celebration. But beneath the cultural glitter lies a powerful data story: how these two metals have evolved, often in sync yet occasionally apart, reflecting global economics, monetary policy, and India’s growth journey.
Using the Reserve Bank of India’s Handbook of Statistics and the latest MCX (Multi Commodity Exchange) spot rates (as of 4 February 2026, gold at ₹1,56,709 per 10g and silver at ₹2,80,991 per kg), we trace four decades of transformation in India’s precious metals market.
The Long Arc: How Gold and Silver Rose from Modest to Mighty
The 1980s: Modest Beginnings in a Controlled Economy
In 1983–84, the price of silver in India stood at ₹3,506 per kg, while gold was priced around ₹1,858 per 10g. At the time, India was still a semi-closed economy, with strict import restrictions and limited private investment channels. Gold and silver were forms of “shadow savings” – physical stores of value amid inflation and limited banking penetration.
Silver, cheaper and more accessible, was the “common man’s hedge,” while gold was the elite’s preferred reserve. Interestingly, from 1983 to 1990, silver prices nearly doubled, growing at an average annual rate of 10–12%, while gold grew more steadily at around 8% annually.
The 1990s: Liberalization and the Great Revaluation
The 1991 economic reforms changed everything. Liberalized imports and deregulated trade meant India’s domestic precious metal prices began mirroring international markets.
Silver’s price movement during the 1990s was relatively muted – it rose from ₹6,760/kg in 1990–91 to ₹8,066/kg in 1999–2000, an average annual growth of just 1.8%. Gold, however, began to attract global and domestic interest as a stable asset amid exchange rate fluctuations.
Gold’s appeal grew when the RBI started building gold reserves in the early 1990s to stabilize the rupee. This era cemented gold’s reputation as both a central bank asset and a family treasure.
The 2000s: Globalization and the Commodities Boom
The first decade of the new millennium saw global commodity markets explode. China’s industrial surge and the weakening US dollar pushed metals and oil to record highs.
In India, silver rose from ₹7,868/kg in 2000–01 to ₹25,320/kg in 2009–10, more than tripling in value. Gold’s growth was even more impressive, reaching nearly ₹15,500/10g by 2010. The global financial crisis of 2008 sent investors fleeing to safety, and gold became the ultimate refuge.
Silver too benefited-but as an industrial metal, it faced demand shocks. Yet, both metals showcased one clear trend: when uncertainty rises, so does their shine.
The 2010s: Divergence and Maturity
Between 2010 and 2020, gold and silver began to move on different tracks. Gold climbed steadily from around ₹19,000 per 10g in 2010–11 to nearly ₹37,000 by 2019–20 – a near doubling over the decade.
Silver, however, swung sharply – rising as high as ₹57,000/kg in 2011–12 before falling back below ₹40,000/kg mid-decade, and then recovering to ₹42,500/kg by 2020.
Silver’s volatility reflected its dual nature – it’s both a precious and industrial metal. Demand from solar energy, electronics, and manufacturing kept it relevant, but speculative swings kept investors cautious.
Gold, on the other hand, became synonymous with stability. By 2020–21, amid the COVID-19 crisis, gold touched ₹48,723/10g, while silver reached ₹59,283/kg – showing how both metals became safe havens in global turmoil.
The 2020s: From Safe Haven to Strategic Asset
The 2020s brought new narratives. Rising inflation, geopolitical tensions, and a weak rupee pushed Indian investors toward tangible assets again.
By FY 2024–25, RBI data shows gold prices averaging ₹75,842 per 10g, while silver rose to ₹89,131 per kg.
As of 04 February 2026, market prices have surged further:
- Gold: ₹1,56,709 /10g
- Silver: ₹2,80,991 /kg
This reflects a sharp acceleration since 2023. Gold prices have more than doubled when benchmarked against recent RBI averages, while silver has risen even faster highlighting how precious metals have responded strongly to currency pressures, global uncertainty, and tighter monetary conditions.
Gold and Silver Price History in India (FY 1983–FY 2026)
(Gold – 24K per 10 g; Silver – per kg)
| FY / Period | Gold (₹ / 10g) | Silver (₹ / kg) |
|---|---|---|
| 1983–84 | ₹1,858 | ₹3,506 |
| 1984–85 | ₹1,984 | ₹3,594 |
| 1985–86 | ₹2,125 | ₹3,918 |
| 1986–87 | ₹2,323 | ₹4,247 |
| 1987–88 | ₹3,082 | ₹5,539 |
| 1988–89 | ₹3,175 | ₹6,367 |
| 1989–90 | ₹3,229 | ₹6,842 |
| 1990–91 | ₹3,452 | ₹6,761 |
| 1991–92 | ₹4,298 | ₹7,332 |
| 1992–93 | ₹4,104 | ₹7,078 |
| 1993–94 | ₹4,532 | ₹6,348 |
| 1994–95 | ₹4,667 | ₹6,692 |
| 1995–96 | ₹4,958 | ₹7,221 |
| 1996–97 | ₹5,071 | ₹7,165 |
| 1997–98 | ₹4,347 | ₹7,352 |
| 1998–99 | ₹4,268 | ₹7,855 |
| 1999–00 | ₹4,394 | ₹8,067 |
| 2000–01 | ₹4,474 | ₹7,868 |
| 2001–02 | ₹4,579 | ₹7,447 |
| 2002–03 | ₹5,332 | ₹7,991 |
| 2003–04 | ₹5,719 | ₹8,722 |
| 2004–05 | ₹6,145 | ₹10,681 |
| 2005–06 | ₹6,901 | ₹11,829 |
| 2006–07 | ₹9,240 | ₹19,057 |
| 2007–08 | ₹9,996 | ₹19,427 |
| 2008–09 | ₹12,890 | ₹21,248 |
| 2009–10 | ₹15,756 | ₹25,321 |
| 2010–11 | ₹19,227 | ₹37,290 |
| 2011–12 | ₹25,722 | ₹57,316 |
| 2012–13 | ₹30,164 | ₹57,602 |
| 2013–14 | ₹29,190 | ₹46,637 |
| 2014–15 | ₹27,415 | ₹40,558 |
| 2015–16 | ₹26,534 | ₹36,318 |
| 2016–17 | ₹29,665 | ₹42,748 |
| 2017–18 | ₹29,300 | ₹39,072 |
| 2018–19 | ₹31,193 | ₹38,404 |
| 2019–20 | ₹37,018 | ₹42,514 |
| 2020–21 | ₹48,723 | ₹59,283 |
| 2021–22 | ₹48,000 | ₹65,426 |
| 2022–23 | ₹52,731 | ₹61,991 |
| 2023–24 | ₹60,624 | ₹72,243 |
| 2024–25 | ₹75,842 | ₹89,131 |
| 2025 (MCX – 16 Oct 2025) | ₹1,26,815 | ₹1,69,095 |
| 2026 (MCX – 12 Jan 2026) | ₹1,39,967 | ₹2,55,625 |
| 2026 (MCX – 4 Feb 2026) | ₹1,56,709 | ₹2,80,991 |
MCX Spot Rates – 16 Oct 2025, 12 Jan 2026, 4 Feb 2026
Figures rounded to the nearest rupee for readability.
Gold vs Silver Return: Compounded Annual Growth (CAGR) Across Timeframes
| Period | Gold CAGR (%) | Silver CAGR (%) | What the data actually says |
|---|---|---|---|
| 3 Years (FY 2022–23 → Feb 2026) | ~43.8% | ~65.5% | Silver dramatically outpaced gold in the post-pandemic surge |
| 5 Years (FY 2019–20 → Feb 2026) | ~33.5% | ~45.9% | Inflation, rupee weakness, and industrial demand strongly favoured silver |
| 10 Years (FY 2014–15 → Feb 2026) | ~19.0% | ~21.4% | Silver edges gold over a full cycle, but with much higher volatility |
| 20 Years (FY 2005–06 → Feb 2026) | ~16.9% | ~17.2% | Over two decades, returns converge, silver remains more volatile |
| ~42 Years (FY 1983–84 → Feb 2026) | ~11.1% | ~11.0% | Long-run convergence: gold compounds steadily, silver cycles sharply |
RBI financial-year average prices as starting points; MCX spot price as of 4 February 2026 used as the endpoint.
Over the last 42 years, gold and silver in India have delivered nearly identical long-term returns – about 11.1% CAGR for gold and 11.0% for silver.
The difference lies not in returns, but in how those returns arrive: gold compounds steadily, while silver delivers sharper, cyclical bursts that reward timing.
Absolute prices and CAGR explain how gold and silver grew.But they don’t explain how the two metals performed relative to each other over time.
For that, economists use a different lens: the Gold–Silver Ratio.
Gold–Silver Ratio in India (1983–2026)
What this ratio shows
The Gold–Silver Ratio measures how many units of silver are required to equal the value of gold (standardised by weight).
It captures relative valuation, not absolute price levels.
Formula used:
Gold–Silver Ratio = (Gold price per 10g × 100) ÷ Silver price per kg
This standardisation ensures both metals are compared on an equal weight basis.
Why the ratio matters
- A rising ratio → gold outperforming silver(typically during economic stress, tight liquidity, or risk aversion)
- A falling ratio → silver outperforming gold(often during growth phases or commodity-led cycles)
Unlike price charts, the ratio highlights cycles, regime shifts, and relative strength.
Gold–Silver Ratio Trend (India)
Visual interpretation
- Peaks indicate periods when gold dominated silver
- Troughs mark phases of silver outperformance
- Sharp swings often align with global shocks or liquidity events
Why Do Gold and Silver Move Differently?
Though they often rise together, the underlying forces differ:
- Gold – The Monetary Metal:
- Moves inversely with interest rates and the US dollar.
- Favoured by central banks and long-term investors.
- Acts as insurance against inflation and geopolitical risk.
- Silver – The Hybrid Metal:
- Has both precious and industrial demand.
- Used in solar panels, semiconductors, and EV batteries.
- More volatile due to speculative and cyclical industrial trends.
In recent years, green energy policies have revived silver demand. According to World Silver Council data, solar panel manufacturing consumes over 20% of global silver output, making it not just a store of value but a future-facing industrial asset.
The Indian Context: Why Precious Metals Still Matter
Despite digital payments, mutual funds, and cryptocurrencies, Indians continue to buy gold and silver. Here’s why:
- Cultural Affection: Festivals like Akshaya Tritiya, Dhanteras, and weddings ensure recurring demand.
- Financial Inclusion: In rural India, metals are a savings vehicle – tangible, portable, and inflation-resistant.
- Rupee Hedge: When the rupee weakens, international gold prices translate into higher domestic prices.
- Limited Supply: India imports almost all its gold and silver, making them sensitive to global trade dynamics.
The result? Even with modern investment tools, Indians held over 25,000 tonnes of household gold as of 2024, valued at more than $1.6 trillion.
Investment Perspective: Data Speaks for Itself
Gold: The Marathoner
Gold’s compounded annual growth rate (CAGR) since 1983 is roughly 10–11%. It’s less volatile, globally liquid, and central-bank-backed. Gold ETFs, Sovereign Gold Bonds (SGBs), and digital gold platforms have made it more accessible.
Silver: The Sprinter
Silver’s long-term CAGR has converged around ~10–11%, but volatility remains its defining trait. Between 2020 and February 2026 alone, silver delivered triple-digit returns, driven by a combination of industrial demand, supply tightness, and crisis-led speculation. Its expanding role in renewable energy and electronics positions silver as a future-facing industrial asset rather than just a precious metal.
Diversification Wisdom
Historically, an 80:20 mix (gold:silver) has offered balance – gold for stability, silver for upside. Globally, silver is increasingly viewed as “gold with a technology layer.“
Looking Ahead: The Future of the Shining Trade
As the world transitions toward clean energy and digital finance, gold and silver are evolving from ornamental assets into strategic ones.
- Gold: Central banks, including the RBI, continue to expand reserves amid de-dollarization trends.
- Silver: Industrial demand from EVs and solar infrastructure could tighten supply over the coming decade.
If current macro and industrial trends persist, historical growth rates suggest further upside though outcomes will remain cyclical rather than linear.
- Gold approaching ₹2 lakh/10g by 2030 cannot be ruled out if historical compounding, inflation, and currency trends persist.
- Silver has already crossed ₹2.8 lakh/kg by February 2026 – years ahead of long-term expectations, reshaping the gold–silver balance
The Human Side of the Data
Every curve on the RBI chart tells a human story- of farmers pledging jewellery during droughts, families gifting silver anklets to newborns, and investors finding refuge in the yellow metal during economic storms.
What began as a cultural obsession has matured into a sophisticated investment ecosystem – a fusion of tradition and data.
Gold and silver don’t just reflect market prices; they mirror India’s resilience and trust in tangible value. As long as uncertainty endures, these metals will continue to glitter – not just in vaults and wrists, but on the spreadsheets of India’s economic history.
Conclusion
From ₹3,506/kg silver in the mid-1980s to ₹2.80 lakh/kg in February 2026, and from ₹1,858/10g gold to ₹1.56 lakh/10g, the journey of these metals captures four decades of India’s economic evolution.
The data speaks clearly: gold secures wealth, silver multiplies opportunity. Together, they remain India’s eternal hedge — part faith, part finance, and enduringly relevant.
Data Sources :
- RBI Handbook of Statistics (1983–2024 averages)
- RBI Handbook of Statistics on the Indian Economy, 2024-25
- Spot price: MCX India (as of 04 February 2026)
Methodology :
- Year-wise gold & silver price data was collected and cross-verified using RBI publications.
- CAGR = Compound Annual Growth Rate formula applied consistently
Disclaimer:
This article is a data-driven analysis and does not constitute investment advice. Projections are illustrative, based on historical CAGR and macro trends.
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