The festival season in India has begun with a glitter of gold. On the first day of Navratri, gold prices touched a fresh record high, once again sparking the age-old debate among investors: where should money be parked during this time, gold, silver, or equity?
On Monday, spot gold rose 1.1% to $3,723.81 per ounce as of 0950 GMT, after hitting a record high of $3,726.19 earlier in the day. US gold futures for December delivery climbed 1.4% to $3,758.40.
With gold surging, Indian investors are weighing their options at the start of the festive season, traditionally a time for buying jewellery, silverware, and also rebalancing investment portfolios.
SILVER MAY SHINE MORE THAN GOLD
Vandana Bharti of SMC Global Securities believes that silver could offer stronger gains compared to gold in the current cycle. “Silver has more reason to go beyond gold this time because gold has been running for four years, and it’s the turn of silver. So I would suggest silver SIP to silvery,” she said.
Silver has historically moved in tandem with gold but tends to deliver sharper rallies once momentum builds. With industrial demand also picking up, experts say silver could play catch-up after gold’s strong run.
EQUITY STILL HOLDS LONG-TERM EDGE
Independent market expert Shahina Mukadam, however, suggested a diversified approach with a heavy tilt towards equities. “I will go with the expert in gold and silver and I will say 15% in silver, 10% in gold and 75% in equity because if you take a very long term, equity outperforms. So I would say equity,” she advised.
Her view reflects the general consensus that while gold and silver can act as hedges in uncertain times, equities remain the best long-term wealth creator.
SHOULD YOU BUY GOLD NOW OR WAIT?
The rise in gold prices has left buyers, especially those preparing for weddings and festive purchases, worried about timing. Vandana Bharti said waiting might not yield much benefit as prices are unlikely to drop meaningfully.
“I don’t see much fall in gold prices, because we have seen one step backward and one step forward in gold prices. And since you are buying for your wedding, so it is not an investment demand. It is for generations, I suppose. So for generations and gift purpose or for wedding purpose, $2,000 or $3,000 doesn’t make more difference in your budget,” she explained.
She added that buyers could consider making partial purchases now. “You should go for buy, because we are expecting another rate in October 2025, which will give another record high to the gold price. So it is a prudent decision to go for buy in gold. And if it comes towards the level of Rs 1,10,000, again, go for buy,” Bharti said.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
