Go for staggered bets in gold, silver

AS PRICES OF gold and silver move up, individuals should take a staggered approach to invest in the two precious metals.

- SAIKAT NEOGI

It will help mitigate the risk of short-term price fluctuations while capitalising on potential long-term gains.

Since January this year, gold and silver prices have moved up 12.7% and 11.6%, respectively. In contrast, Nifty declined 5%. The ongoing uncertainty due to US trade tariffs and slower global growth prospects have pushed gold prices to an all-time high. In the last one year, returns from silver (32.2%) have surpassed that of gold (30.5%).

"With global economic conditions remaining uncertain, gold is expected to retain its appeal as a hedge against market instability in the months ahead," says Nehal Meshram, senior analyst - manager Research, Morningstar Investment Research India.

For those who want to avoid the hassles of holding physical gold and silver, exchange-traded funds (ETFs) offer attractive alternatives. Gold and silver ETFs track the price of the precious metals and provide returns that closely correspond to the performance of the underlying asset.