Gold is beating silver: What smart investors should do about it
Goldman Sachs says gold will keep rising—and silver may lag behind. Here’s what to know
Dubai: If you’re thinking about investing in gold or silver to protect and grow your wealth, Goldman Sachs has some clear advice: stick with gold for now.
Gold has been on a tear in 2025—up over 26% so far—while silver has gained a more modest 12%. And according to a recent Goldman Sachs report, this gap is likely to keep growing. Why? Because central banks around the world keep buying gold at record levels, and silver’s main driver—solar panel production in China—is starting to cool off.
“With Chinese solar production slowing, elevated recession risks, and continued gold buying by central banks into 2025, we expect gold to keep outshining silver,” Goldman wrote.
What’s the gold-silver ratio—and why it matters
Right now, it takes over 100 ounces of silver to buy one ounce of gold—that’s the highest the gold-silver ratio has been in years. A year ago, that number was closer to 85. That tells investors that silver just isn’t keeping pace with gold—and likely won’t for a while.
Why gold is outperforming
Here’s what’s pushing gold higher:
Central banks are buying large amounts of gold every month.
Investors are nervous about the economy, inflation, and politics.
Safe-haven demand is rising, especially ahead of big decisions from the U.S. Federal Reserve.
Goldman now expects gold to hit $3,700 by the end of 2025, and possibly $4,000 by mid-2026. If the U.S. economy slows down or hits a recession, the price could climb even higher—up to $3,880—as people pile into gold-backed ETFs.
Should you give up on silver?
Not quite. Silver still has upside potential—especially if gold keeps rallying. The two metals often move together, even if gold leads the way. But silver is more tied to industrial demand (like solar energy and electronics), which makes it a bit more volatile and sensitive to global growth trends.
That said, silver is still trading far below its all-time highs, and long-term investors could see value there—just don’t expect it to outshine gold in the near future.
What UAE-based investors should know
For readers in the UAE, where gold remains a popular form of savings and wealth protection, the current market may be especially appealing. With the UAE dirham pegged to the US dollar, gold priced in dollars provides a relatively stable investment, without the currency risk that some other global investors face. And with Dubai being a global gold hub, access and liquidity are easy advantages for residents here.
Bottom line?
Gold is winning the spotlight this year—and according to Goldman Sachs, that’s not changing anytime soon. If you're building a precious metals strategy in your investment portfolio:
Prioritize gold for stability and strong upside.
Keep some silver for long-term diversification—but don’t expect fireworks right away.
Watch the Fed and global politics, as any uncertainty could push gold even higher.
Key takeaways:
Gold is up 26% this year; silver is only up 12%.
Central banks are loading up on gold, pushing prices higher.
Goldman Sachs expects gold to hit $3,700–$4,000 by mid-2026.
Silver may lag behind, especially as China’s solar demand slows.
For UAE investors, gold remains a stable, accessible store of value.
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