Editor’s Note
This article provides a comprehensive overview of the advantages and disadvantages of investing in precious metals, featuring expert insights on gold and silver investment strategies.
If you are interested in understanding the pros and cons of investing in gold and silver, this entire article is for you. Here, we will share expert opinions on all key questions related to gold and silver investment strategies.
On Wednesday, the prices of gold and silver rose again. In the country, gold became more expensive by ₹5,170 per 10 grams, touching a price of ₹1,58,990, while silver became more expensive by ₹17,260 per kilogram, reaching a price of ₹2,85,150. Thus, in one day, the prices of gold and silver rose by 3.360 percent and 6.440 percent respectively. This means silver shone brighter than gold today.
But will the rally in these precious metals continue? Will it be wise to continue investing in gold and silver even after a trade deal with the US, or will this strategy backfire later? Such questions become even more important because just last week, gold and silver prices saw a continuous decline.
Hari V, Head of Commodity Research at Geojit Investments Ltd., says the decline in gold and silver prices last week was temporary.
A report by the business news website Economic Times cites the opinion of Tanvi Kanchan, Associate Director at Anand Rathi Shares and Stock Brokers. Kanchan says that when trade barriers are removed, interest in safe-haven investments like gold and silver often decreases, but globally it is being observed that this is not causing a significant drop in gold prices.
Meanwhile, Siddharth Srivastava, Head of ETF and Fund Manager at Mirae Asset Investment Managers (India), also does not see any reason for a major long-term decline in gold and silver prices.
Saurabh Jain, Co-founder and CEO of Stable Money, says that a reduction or end to India-US trade tensions will actually increase silver prices because tariffs will decrease and trade ease will increase.
Atul Singhal, Founder and CEO of Scripbox, also believes that silver will shine more due to the trade deal because its demand in industries will increase. Even if industrial demand does not increase, central bank purchases and geopolitical risks will not allow the prices of both metals to fall in the long term.
Prithviraj Kothari, Managing Director of RiddhiSiddhi Bullions Limited, says that gold prices will maintain a slight upward trend, but due to a surge in industrial demand, silver prices will see much more volatility. In this context, silver is excellent for medium to long-term investment. Atul Singhal also says that silver can give even higher returns than gold, but it also carries more risk.
Siddharth Srivastava says that investing in gold and silver should be done with a long-term perspective. He says the significant decline in gold and silver prices last week is enough of a lesson to be cautious. Meanwhile, Kanchan says that after gold and silver prices rise again, investors will sell them to book profits, and then prices will fall again.
Their opinion is that investing in gold and silver through ETFs or digital platforms is wiser than buying physical gold and silver. They believe that once a trade deal with the US is done, investors will not move towards gold and silver out of compulsion but will strategically focus on long-term investment.
On the other hand, Saurabh Jain advises investing in gold and silver via SIP (Systematic Investment Plan). He says this will help avoid indecision in decision-making due to daily fluctuations.