What drives each price
| Gold | Silver | |
|---|---|---|
| Largest uses | Jewellery, bars and coins, ETFs, central bank reserves | Industry: electronics, solar panels, vehicles; then jewellery, silverware, bars and coins |
| Industrial share | Small; technology is a single-digit share of demand | About 58% in 2025: 657 million ounces of 1.13 billion (Silver Institute) |
| Sensitive to | Interest rates, the dollar, inflation, risk events, central bank buying | The same factors, plus industrial activity and solar manufacturing |
Why silver moves more
The silver market is much smaller than the gold market in value, and a large part of its demand rises and falls with industry. Both make its price swing more than gold in either direction. Over short periods the two can move very differently.
The gold-silver ratio
The ratio is the gold price divided by the silver price, both per ounce: how many ounces of silver one ounce of gold buys. It is a way to compare the two prices over time. It is not a trading signal, and it has stayed high or low for long periods.
Costs of holding each in India
| Way of holding | Costs to expect |
|---|---|
| Jewellery | Making charges, 3% GST, and a deduction when you sell or exchange |
| Coins and bars | Smaller making premium than jewellery, 3% GST, storage and insurance |
| ETFs on NSE/BSE | Brokerage and the fund’s yearly expense ratio; no GST; needs a demat account |
| Mutual funds / fund of funds | Expense ratio of the fund and of the ETF it holds; no demat needed |
| Digital gold or silver on apps | 3% GST and platform charges; not regulated by SEBI |
How gains are taxed (FY 2026-27)
| How you hold it | Long-term after | Long-term rate | Short-term |
|---|---|---|---|
| Physical gold or silver (jewellery, coins, bars) | 24 months | 12.5%, no indexation | Your slab rate |
| Digital gold or silver bought on apps | 24 months | 12.5%, no indexation | Your slab rate |
| Gold or silver ETF (listed on NSE/BSE) | 12 months | 12.5%, no indexation | Your slab rate |
| Gold or silver mutual fund or fund of funds | 24 months | 12.5%, no indexation | Your slab rate |
Frequently asked questions
- Is digital gold regulated?
- No. In November 2025 SEBI cautioned that digital gold and e-gold sold on online platforms are outside its regulation, so investor protection mechanisms for securities do not apply. Gold ETFs and exchange-traded electronic gold receipts are regulated.
- Are gold and silver taxed differently?
- No. The holding periods and rates depend on the form (physical, ETF, fund), not on the metal.
- Is this page investment advice?
- No. It explains how prices, purity and taxes work, with sources. It does not recommend buying, selling or holding any product. See our Financial Disclaimer.
Sources
- The Silver Institute: silver market in deficit for fifth straight year
- World Gold Council: central banks, Gold Demand Trends Q2 2026
- The Week: SEBI flags unregulated digital gold (9 November 2025)
- HDFC Mutual Fund: gold and silver taxation leaflet
- Income Tax Department
- CBIC: GST rates for goods
This guide explains rules and prices for general information. It is not investment, tax or legal advice. Duty and tax rules change; check the official source before you act. See our Financial Disclaimer and Corrections Policy.