Amidst stock market fluctuations, persistent inflation and rising geopolitical tensions around the world, investors are again looking for a safe haven. In such an environment, gold and silver are emerging not just as jewelery but as strong investment options. So in such a situation, is it wise to buy at the current level or would it be better to wait a bit? Let us know.
History shows that whether it is the global recession of 2008 or the era of Covid-19, gold has provided security to investors. When stock markets fall, gold often provides stability. This is why it is called a ‘safe haven’ asset. Experts estimate that gold may reach ₹1,75,000 to ₹2,00,000 per 10 grams by the end of 2026 due to strong demand and buying by central banks. Many central banks, including the Reserve Bank of India, are increasing gold reserves to reduce dependence on the dollar, thereby supporting prices.
Silver: Security as well as growth
Silver is considered a hybrid asset. It behaves like gold in an economic crisis, but its real strength lies in industrial demand. Its use in solar panels, electric vehicles, electronics and medical equipment is increasing rapidly. According to experts, this year silver can go from ₹ 2.75 lakh to ₹ 3.5 lakh per kg. The increasing demand for green energy and digital infrastructure may further push its prices. However, there are many fluctuations in it.
Buy or stay? what should be the strategy
Piyush Jhunjhunwala, Founder and CEO of Stockify, says that the decision depends on the target and risk factor of the investor. Investors who do not take much risk can keep 5% to 15% of their portfolio in gold, so that they can get protection in times of market decline. At the same time, aggressive investors may seek opportunities in silver, but they should be prepared for greater volatility. Strategies like phased investment or SIP can reduce the risk.
Why is demand increasing in changing times?
Due to increasing debt, decreasing power of money and inflation across the world, people want to invest money in such things whose real value remains intact. Gold and silver are available in limited quantities, hence they are considered a good way to keep money safe for a long time. Today it is also easy to invest in them. You can invest by buying Sovereign Gold Bond, Gold ETF, Digital Gold or real gold and silver.
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