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VOL. 8, ISSUE 1 (2026)
Golden parallels, silver gaps: A financial and geo-political lens on precious metals
Authors
Salim Malik A R, Almas Banu Tumminakatti
Abstract
This study investigates the complex
relationship between gold and silver prices in global financial markets,
particularly under conditions of geo-political stress. Both metals have long
been considered safe-haven assets, yet their co-movement and divergence
patterns are less thoroughly understood. Leveraging historical price data from
1970 to 2025, this research applies regression analysis and case-based
examination of key geo-political events to uncover how these metals behave
individually and jointly over time. The results indicate a consistently strong
correlation between gold and silver prices, confirming a long-term linkage. However,
during periods of geo-political uncertainty or industrial downturns, silver
often diverges from gold due to its hybrid nature as both a precious and
industrial metal. Events such as the 2008 financial crisis and the 2020
pandemic illustrate these shifts, where gold surged as a hedge while silver’s
performance was tempered by industrial demand constraints. The study also
highlights the gold-to-silver ratio as a useful diagnostic for identifying
periods of price divergence. These findings offer important implications for
investors, analysts, and policymakers aiming to use precious metals as part of
hedging, diversification, or macroeconomic signalling strategies. By clarifying
the dynamic interplay between these two key assets, this research fills a critical
gap in the understanding of precious metal behaviour across economic and
geo-political cycles.
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Pages:38-42
How to cite this article:
Salim Malik A R, Almas Banu Tumminakatti "Golden parallels, silver gaps: A financial and geo-political lens on precious metals". International Journal of Commerce and Economics, Vol 8, Issue 1, 2026, Pages 38-42
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