Tariff War Fallout: Gold & Silver Rates Nearly Equal

Nagpur: Rates of one tola (10 grams) of gold & a kilogram of silver are neck to neck these days. The shrinking in the rates of the 2 precious metals is unprecedented, say traders.
The geopolitical situation is drawing funds into gold, as an impact of tariff war. On other hand, the tariff war has affected consumption of silver. If gold is seen as an investment, especially in troubled times, silver also has industrial use. In current times, when gold is being preferred against dollar, silver has been slow to catch up as its industrial demand has been affected, said bullion traders.
On Wednesday evening, gold was at Rs94,800 a tola, and the price of silver stood at Rs97,000 a kilogram — difference of mere Rs2,700. In early hours of trading, the gap shrank to Rs1,500. This takes the ratio to almost 1:1.
In Indian markets, a tola is standard measure for quoting the yellow metal rates, & it is one kilogram for its poor cousin: silver. However, gap of at least Rs10,000 between them is considered normal, said traders.
In January this year, when gold rates touched Rs82,000 a tola, silver was at Rs94,500 a kilogram. Last year, on April 16, silver was at Rs84,300 a kilogram; over Rs11,000 more than a tola of gold. In April 2023, when gold was at Rs60,900 a tola, silver ruled at Rs76,000 a kilogram. The gap was wider in 2022, when a kg of silver was priced at Rs79,500 & a tola of gold was Rs53,800, according to records maintained by market at Nagpur.
Rajesh Thakker of M/s Dipti Jewellers, firm dealing in bulk silver, said gold has seen a high demand. "Gold is easy to store; imagine space I may need to store 30 kgs of silver, while gold of equal value can be kept in a cupboard by a retail investor. For big players, gold is preferred in times of de-dollarisation," said Thakker.
Rakesh Rokde, chairman of Gems and Jewellery Council, said internationally, per ounce, gold was around $3,291, & silver was $32.61 an ounce on Wednesday. When converted, after adding customs duty, the rates come almost neck to neck.