Gold Back at Centre Stage:
Whenever global anxiety rises, gold rarely misses a chance to reclaim its “safe haven” tag, and this year is no different.
Gold has hit an all-time high of $3,683/oz (up 43% YTD). In India, MCX futures quoted ₹1,10,138 per 10g. Silver too is shining—at $41.98/oz, it’s up 39% YTD, the highest in 14 years.
What’s driving the rally?
● Geopolitical tensions (Middle East, US–China).
● Central banks, especially in Asia, are reducing reliance on the USD.
● US Fed is signaling rate cuts, lowering the cost of holding bullion.
History offers perspective:
· In 2012, gold hovered around $1,850/oz and then remained stuck in a narrow range (±10%) for over a decade. It wasn’t until 2023—after nearly 11–12 years of stagnation—that it finally began moving towards new highs, truly testing investors’ patience.
· Lesson: gold rarely crashes, and currently, no major investors are selling as of now. However, it can severely test patience with prolonged periods of sideways movement.
Silver’s twist:
· Silver shines bright today, but historically its movements have been rogue, with sudden crashes and sharp rises.For retail investors, it’s wiser not to take direct exposure. Instead, leave the “how much & when to buy” decision to the acumen of a diversified Multi-Asset Fund’s Fund manager.
Both fit better as portfolio diversifiers, not as jackpots.
