Gold at ₹1.3 Lakh, Silver Doubles in Price: Should You Invest This Diwali?

New Delhi: With gold prices crossing ₹1.3 lakh per 10 grams and silver doubling in value compared to last year, Diwali 2025 has sparked renewed excitement in India’s bullion market. Both precious metals are witnessing an unprecedented rally, attracting investors and jewelry buyers alike.

According to Ajay Kedia, Managing Director and Director at Kedia Advisory, the current price surge is driven by a combination of domestic and international economic uncertainties. “Happy Diwali! Gold prices have already surpassed ₹1,30,000 in the domestic market, and silver prices have doubled since last Diwali. It’s indeed a very auspicious day,” Kedia told Business Today.

He pointed out that factors such as global trade tensions, inflation fears, and economic slowdowns have fueled the rally. “We didn’t expect such a strong bull run, but all indicators are currently supportive,” he added.

Will the Gold and Silver Rally Continue After Diwali?

Kedia explained that historically, gold and silver have delivered 20–25% annual returns. Over the past few years, cycles of interest rate changes, geopolitical tensions, and recession fears have repeatedly influenced prices — yet the metals continued to perform positively. “We believe the favorable buying sentiment will persist for some more time,” he said.

However, Kedia advised caution. “Right now, there is a minor risk associated with fresh investments. Unless there is a decline in interest rates or a softening of global tensions, the rally may sustain for a while,” he stated.

He further projected that gold could reach $4,500 per ounce and silver could touch $72 per ounce in the domestic market. “The market remains strong but with a slightly cautious tone. We may also see a short squeeze in silver prices easing out post-Diwali,” Kedia noted.

The Rise of Silver: The ‘Poor Man’s Gold’ Shines Bright

When asked about whether it’s the right time to invest, Kedia highlighted that silver is currently outperforming gold in terms of both consumer and industrial demand. “Silver has long been called the poor man’s gold, but now it’s attracting serious investors. Over the last three to four years, demand has surged due to the expansion of the electric vehicle (EV) industry and clean energy technologies,” he explained.

Silver’s dual role as an industrial metal and investment asset has made it increasingly valuable. However, Kedia cautioned that new investors should be mindful of the timing. “Prices have already doubled since last year. While silver remains strong, this may not be the ideal time to enter,” he added.

Gold vs. Silver: Current Price Trends and Projections

Should You Invest This Festive Season?

While the ongoing rally appears promising, experts recommend maintaining a balanced approach. Gold remains a safe-haven asset during economic uncertainty, while silver offers higher volatility and short-term trading opportunities. Investors should assess their risk appetite before making large purchases.

“For those seeking long-term stability, gold remains the preferred choice. However, those looking for faster returns may find silver attractive — but only with a cautious entry point,” Kedia advised.

Market Outlook and Expert Disclaimer

Both gold and silver are currently benefiting from festive buying, inflation hedging, and weak global currencies. Yet, analysts warn that any major interest rate cuts or geopolitical stability could slow down the rally.

Disclaimer: The views and predictions mentioned are those of individual market experts and do not reflect the official position of India Today Group. Investors are strongly advised to consult a certified financial advisor before making any investment or trading decisions.