It’s that time of the year when gold and silver prices make headlines.
Every year, Dhanteras and the advent of Diwali mark a rush for precious metals. But this time, gold and silver have surged to record highs across India. The scenario has made festive buying both exciting and a little unnerving.
The reasons?
Reports claim that investors across the globe are treading cautiously. Inflation, currency swings, and geopolitical tensions have made gold shine brighter.
Meanwhile, the festival and wedding season is upon India. Silver is keeping pace. Often called the “poor man’s gold,” it’s rising on strong industrial demand. Solar panels. Electric vehicles. Electronics. It’s no longer just for ornaments, it’s powering the future.
But in this price surge, how should households buy?
Jewellery remains the traditional choice. Yet, it comes with extra costs — making charges and GST. That makes it less efficient as an investment. Coins and bars, on the other hand, offer better value for pure gold buyers.
Digital options worth exploring
Experts have a suggestion for those who prefer ease and safety. They believe digital options work best. Sovereign gold bonds and exchange-traded funds (ETFs) provide gold exposure without the worry of storage or hidden costs.
Silver is gaining popularity too. Bars, coins, and ETFs are available. But silver prices are more volatile than gold. It’s a riskier metal and better used in moderation.
Still, experts have warned against going overboard. What should be done during a rally? They feel precious metals should stay within 10 to 15 percent of investors’ total investment portfolio.
Going beyond that may mean missing out on faster-growing assets like equities.
Trying to time the market is another mistake to avoid. Prices may rise or fall. A smarter approach? Buy in parts. Spread your purchases over weeks or months. This way, you average out your cost and reduce the risk of buying at the peak.
Physical gold or ETFs? For long-term goals, ETFs or sovereign bonds are more efficient. They skip making charges and offer better liquidity.
Silver or gold?
Should you pick silver instead of gold? Silver has potential but is more volatile. It can be a useful addition, not a replacement.
How much gold or silver is right? A balanced portfolio keeps it between 10 and 15 percent. Enough to protect, but not so much that it holds you back.
This Diwali, as prices glitter and lights glow, smart planning is key. The general opinion is, celebrate with tradition. But with a touch of caution.
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