Please find below the 5 charts that reveal interesting stories on Markets and Investing.

1) Global Central Banks Are Driving Gold Prices Up:

• Since the Ukraine war began in 2022, central banks like China, India, Russia, and Turkey have been buying gold aggressively.
• Today, many foreign central banks hold more gold than US Treasuries—a major shift in global strategy.
• Recent Trump-era tariffs have added to global uncertainty, pushing central banks to buy even more gold.
• As long as central banks keep buying, gold prices are likely to stay strong.

2) Silver Demand Is Surging—But Supply Isn’t Keeping Up:

• Industrial demand for silver is booming—especially from electronics, electric vehicles and solar panels.
• This surge has led to a 5th straight year of supply deficit, meaning demand is outpacing global production.
• Investment in new silver mines remains low—mainly due to environmental concerns and stricter regulations.
• The result: tight supply, strong demand and upward pressure on silver prices.

3) Silver Looks Undervalued Compared to Gold:

• The Gold/Silver Ratio tells us how many ounces of silver are needed to buy one ounce of gold.
• Right now, the ratio is around 87x, well above its long-term average of ~69x.
• Historically, such elevated levels have often signaled that silver is undervalued relative to gold.
• In simple terms: silver looks cheap when compared to gold—and may offer better upside if the ratio reverts to its mean.

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4) Gold Moves Differently from Indian Equity:

• Gold has a negative correlation with Indian equities, meaning it often performs well when stock markets fall.
• In years like 2009, 2012, 2016, 2020, and 2023, gold delivered positive returns while Indian equity markets corrected.
• This makes gold a powerful diversification tool—helping balance portfolios during volatile equity phases.
• Including gold in your asset mix can reduce overall risk and improve long-term stability.

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5) Indian Equity Looks Attractive vs Gold:

• The Nifty/Gold Ratio helps compare the relative value of Indian equities to gold.
• Right now, the ratio is trading at low levels, mainly due to the muted performance of the Nifty and the strong rally in gold over the past year.
• Historically, a low Nifty/Gold ratio has often signaled a strong comeback in Indian equities.
• With gold and silver rallying sharply, Indian equity now looks undervalued in comparison—making it an attractive opportunity for portfolio rebalancing.

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Investor Guidance: At current levels, it is prudent to invest only that money in equity which is not required for next 5-7 years. 

Best Regards

Dr. Mukesh Jindal CFA, CFP, CAIA, Ph.D.

Alpha Research

Disclaimer:  The perspectives provided reflect our expectations of the economy, market, and investments, which may or may not materialize. Investors are encouraged to conduct their own due diligence before investing.