After the Rs 47,000 February Drop, Is Silver Still Worth Buying? What About Gold After an Rs 5,600 Rise?

Precious metals have been in focus lately as silver prices fell sharply in February dropping by about Rs 47,000 per kilogram—while gold saw a near Rs 5,600 uptick over the same period. These contrasting movements have left investors wondering: Is silver now attractive to buy, or is it still pricey? And with gold’s recent rise, has it lost its investment appeal, or is it still a safe haven worth holding?

Here’s a closer look at where the market stands, what’s driving prices, and how investors might think about gold and silver in the current scenario.

What Drove Silver’s Big Drop

Silver’s steep fall in February was influenced by several factors. A stronger U.S. dollar, rising global interest rates, and weakening industrial demand all weighed on silver. Unlike gold, which is primarily a store of value, silver has dual demand—both as a precious metal and an industrial commodity. When manufacturing activity slows or macroeconomic headwinds rise, silver often takes the hit first.

The Rs 47,000 decline reflects both global price shifts and local currency movements. For prospective buyers, this drop has lowered the entry price significantly compared with recent highs.

Is Silver Now Attractive or Still Expensive?

Even after the drop, whether silver is “cheap” depends on the lens you use. Compared with levels a few months ago, the current price offers a notable discount. From a long-term historical perspective, silver still trades above its decade-average price—suggesting room for further correction or consolidation.

Investors seeking tactical entry might see value in the decline, especially if demand from industrial sectors picks up or if macro risks ease. However, silver’s volatility means risk tolerance is key; this metal tends to swing more sharply than gold.

For those seeking slower, steadier growth with lower volatility, silver may still feel expensive relative to its fundamental average.

Gold’s Recent Rise—What It Means

Gold’s rise of around Rs 5,600 in February underscores its continued role as a risk hedge. When markets show uncertainty—whether due to geopolitical tensions, inflation worries, or central bank policy shifts—gold often benefits as investors seek safety.

Even after the recent uptick, gold’s price remains within long-term support levels, and some analysts believe there’s still upside if risk-off sentiment persists. Unlike silver, gold isn’t as tied to industrial demand, so it tends to be a purer play on wealth preservation.

Should Investors Buy Gold Now?

With gold higher, new buyers might be cautious, especially if short-term profit-taking or corrections occur. However, for long-term investors—particularly those focused on portfolio diversification and inflation protection—gold continues to be a compelling option.

Incremental investing through systematic purchases can help mitigate timing risk, especially in a market with short-term swings.

Comparing Gold and Silver for Portfolios

Volatility: Silver tends to be more volatile than gold, meaning bigger upswings and downturns.
Demand drivers: Industrial demand influences silver more, while gold is driven largely by investment and central bank buying.
Role in portfolio: Gold often serves as a hedge against uncertainty; silver can offer higher upside but with greater risk.

The Bottom Line

Silver’s sharp February decline has made it more appealing compared with recent highs, but it may still trade above long-term historical averages. For investors with higher risk tolerance and a medium-to-long-term horizon, selective buying during dips could be worthwhile.

Gold, despite its recent rise, maintains its traditional appeal as a safe haven and long-term store of value. While short-term fluctuations are normal, gold’s strategic role in risk management portfolios remains intact.

Ultimately, both metals have a place depending on investment goals, risk tolerance, and time horizon and disciplined investing often matters more than trying to time every peak and trough.