Perspective on `Precious Metals` by Juzer Gabajiwala, Director, Ventura
Below the Perspective on `Precious Metals` by Juzer Gabajiwala, Director, Ventura
All that glitters is not GOLD. It could be SILVER!
Is gold a safe haven or is it an Indian obsession. Whatever may be the scenario, gold had delivered stellar returns. And to add that depreciation of INR v USD also adds glitter. Gold as an asset class has now come a lon way from traditional physical to electronic to ETFs/SGB as well as in futures. Will gold/silver continue to rally is anybody's guess. Many investors are still confused about the options available. Do treat this as one more asset class to hold (not jewellery though).
The Rising Clout of Precious Metal
- From Lockers to Logins from Traditional Wealth to Modern Portfolios.
The Shift in Investing
- Gold & silver have evolved from family wealth-keepers to global economic armor, with central banks steadily increasing reserves.
- 2025 milestone: Gold's share in global reserves overtakes US Treasuries for the first time since 1996.
- As of August 2025, gold has surged -42% over the past year, while silver has gained -38%.
Smarter Ways to Invest
- Coins / Bars → Issues with purity, storage & resale.
- Sovereign Gold Bonds (SGBs) → Govt-backed, interest benefits; currently no fresh issues.
- ETFs → Exchange-listed, liquid, backed by physical gold/silver in vaults.
- FoFs → Invest in ETFs without demat; SIP-enabled, slightly higher costs.
Trend → Rising AUM in ETFs & FoFs shows investors shifting to digital, liquid options.
The Growing Power of Precious Metals
- Gold has moved beyond its traditional role -global safety net, with central banks steadily increasing reserves.
- Silver is gaining importance with dual demand:
- 1.Industrial growth (EVs, solar energy, electronics, healthcare)
- 2.Safe-haven asset during uncertainty.
For investors, precious metals offer a mix of hedge, diversification, and long-term value.
Above views are of the author and not of the website kindly read disclaimer
