Gold and silver outlook: Both gold and silver are considered good options for investors to make portfolio safe and balanced. This year, both these precious metals have seen a tremendous boom. There are reasons behind global economic uncertainty, procurement of central banks and cutting interest rates of American Federal Reserve.
Tata Mutual Fund has explained why a strong rally has been seen in gold and silver and what should be the strategy of investors about these two.
Why gold became first choice of investors
According to a Tata Mutual Fund report, gold has always performed well in a period of economic instability. The price of gold was doubled from January 2008 to August 2011 during the 2008 financial recession. In the beginning of the Kovid-19 epidemic, gold saw a rise of 53% in 2020. This year also gold has reached a record high.
There are many reasons behind this strength of gold. Central banks around the world have almost doubled their gold reserves in the last decade. And India has also increased it. In September 2025, the US Federal Reserve cut the interest rates by 25 basis points, leading to a rise in gold prices. There is expected to cut further rates.
Russia-Ukraine War and Instability in Middle East also made gold safe investment. Since more than 85% of gold is imported in India, the weakness of the rupee has further increased domestic returns.
The Tata Mutual Fund estimates that the gold may remain in the short term within 3,500 to $ 4,000 an ounce. They suggest that the investor should add gold slowly when it falls, so that it can provide protection from inflation, rupee weakness and geopolitical risks in a long time.
Silver: Well shine than gold
This year silver performance has been stronger than gold. In January, it rose by 61% to above $ 46 in January by $ 28.92 an ounce.
According to the Tata Mutual Fund, the biggest reason for the strength of silver is its industrial demand. The use of silver is increasing rapidly in sectors such as electronics, green technology and solar panels. China’s recovery and global strong industrial activities have increased its prices.
Like gold, fed rate cuts and dollar weakness have also supported silver. The silver market can remain in supply deficit for the fifth consecutive year, which will give further support to its prices.
India imports about 92% of its silver. In such a situation, the weakness of the rupee has further increased its returns at the domestic level. Currently, the gold-silver ratio has come down from 85 to about 81, indicating that silver can perform better than gold in the coming months.
Strategy for investors
Tata Mutual Fund has advised investors to adopt a balanced strategy. It suggests that investors should apply 50% in gold and 50% in silver. This will benefit investors from industrial growth of silver on the one hand, while gold will support safe investment.
Long -term perspective
In the last 30 years, gold has given an average return of 7.6% in dollars and 11% in rupee. At the same time, silver gave 6.4% returns in dollars and 9.8% per annum in rupee.
In the long run, both metals are reliable to keep the property safe. However, due to lack of industrial demand and supply, silver is expected to increase a lot in the coming times.
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