Avoid overexposure after recent runup in gold and silver prices

Gold and silver exchange-traded funds (ETFs) saw record net inflows of ₹4,085 crore in June 2025.

- HIMALI PATEL

Gold ETFs received ₹2,080 crore, while silver ETFs attracted ₹2,005 crore. After the sharp price rally in these ETFs in recent times, experts suggest avoiding overexposure to them.

Price performance driving inflows Gold prices have risen steadily over the past two years, a major driver being sustained buying by central banks. Recent price performance has been a major driver of flows.

"Gold prices rose in June. Also, growing uncertainty led investors to view gold as a safe haven," says Satish Dondapati, fund manager, Kotak Mahindra Asset Management Company (AMC). Silver is benefiting from strong industrial demand. "There has been strong demand from industries like solar power, electric vehicles, electronics, and AI (artificial intelligence) chips," says Dondapati.