Gold Outshines Silver with Stronger Central Bank Buying
Gold and silver have been strong performers in recent years, but their investment outlooks are diverging. According to Mirae Asset Mutual Fund's latest gold and silver market update, gold currently offers a relatively better risk-reward profile than silver.
The fund house cites robust central bank buying, resilient investor demand, and its traditional role as a safe-haven asset as key drivers of gold's appeal. Central banks purchased 289 tonnes of gold in the second quarter of 2026, a 62% increase from the same period last year.
Silver, on the other hand, continues to benefit from supply shortages and industrial demand. However, it is expected to remain more volatile due to its dependence on by-product mining, which makes it difficult for miners to quickly increase production when prices rise.
India has been a notable exception to global trends, with Indian Gold ETFs attracting 4.2 tonnes of net inflows during the April-June quarter and investment value more than doubling year-on-year to approximately ₹6,300 crore.