Gold at ₹1.46 lakh, Silver above ₹3 lakh: Should you buy, sell or hold?

Investors around the world are flocking to gold and silver as geopolitical tensions and market volatility surge, pushing both metals to unprecedented price levels. The rush into safe-haven assets comes on the heels of global trade tensions and renewed risk aversion.

 

On major commodity exchanges, gold and silver have climbed to record highs, reflecting heightened safe-haven demand:

 

The price of 24-carat gold climbed ₹10 in early trade on Tuesday, with ten grams of the precious metal trading at ₹1,46,250, according to the GoodReturns website. The price of silver also rose by ₹100, with one kilogram of the precious metal selling at ₹3,05,100.

 

The price of 22-carat gold increased by ₹10, with ten grams of the yellow metal selling at ₹1,34,060.

  

Silver’s performance has been especially striking: it delivered nearly 30% returns in mid-January alone, on the back of momentum from late 2025

 

What Is Driving the Rally?

 

Multiple factors are converging to lift bullion markets:

 

"The rally is mainly attributed to strong global geopolitical uncertainty, supply-side concerns, a weakening US dollar, and robust industrial as well as investment demand. Additionally, precious metals received price support at higher levels due to the sudden imposition of tariffs by US on few European nations, following recent developments related to the Greenland issue.

 

 Over the past one-year, silver prices have surged by more than 170%, while gold has gained over 70%. Both metals are widely regarded as safe-haven investments, and silver being an industrial metal as well has an added advantage in the current macroeconomic scenario," said Satish Dondapati, Fund Manager, Kotak Mutual Fund.

 

1. Geopolitical Tensions and Trade Risks:

Renewed global uncertainty — including tariff threats by the United States on European partners tied to strategic bargaining over Greenland — has rattled markets and boosted demand for traditional safe havens.

 

2. Interest Rates and Monetary Expectations:

Gold typically benefits when interest rates are low or expected to be cut, making non-yielding assets more attractive. Although some inflation indicators remain mixed, expectations of future rate adjustments by central banks have lent support.

 

3. Industrial Demand for Silver:

Unlike gold, silver carries significant industrial usage. Expansion in solar power, electric vehicles, AI and data centres continues to sustain real demand alongside investment flows.

 

India’s Bullion Market — A Closer Look

 

India’s precious metals market has mirrored global trends, with local futures jumping sharply:

 

• Silver futures on the MCX climbed more than 4% in a single session, hitting records above ₹3 lakh/kg.
• Gold futures also surged nearly 2% to new highs, reflecting renewed investor appetite.
• Analysts note that a weaker rupee against the US dollar has further accentuated gains in domestic bullion prices, making imports more expensive and encouraging local investment interest.

 

Silver Outperforming Gold — Why This Matters

 

Traditionally, gold leads precious metals markets, with silver often following. But this rally has seen silver outperform gold in several sessions, due to both safe-haven flows and strong industrial backing.

 

For many investors silver’s accessibility and recent momentum make it a compelling alternative to gold, even though gold remains the cornerstone hedge against inflation and currency risk.

 

How should investors invest?

 

“Gold and silver can play a meaningful role in portfolio diversification, but the way investors access these assets matters. Physical metal often brings uncertainties around purity, making charges, storage, and resale, while ETFs require demat accounts that many investors still do not use. The Fund of Fund (FoF) structure removes barriers such as demat requirements, lowers the entry point to ₹1,000, and enables disciplined investing through SIPs starting at ₹100," said Vishal Kapoor, CEO, Bandhan AMC.

 

Manav Modi - Commodities Analyst - Motilal Oswal Finance Services has the following advice for investors: 

 

After a sharp surge in 2025 some profit booking should not be ruled out. Hence, investor should cautiously wait for a fresh entry on lower end to buy again for higher targets.

 

A staggered approach of investment is advised with some caution as volatility in this commodity has increased significantly. 

 

If an investor has a buying position partial profits can be booked. However, the view continues to remain bullish and any dips should be used as an accumulation zone for higher targets.

 

Motilal Oswal Financial Services in its report ‘Commodities Review 2025 & Preview 2026’ also said that 2026 is likely to be a year of transition rather than disruption.

 

 MOSFL expects gold and silver to retain their strategic relevance in early 2026, supported by continued central bank and investor demand, limited mine supply growth, and relatively inelastic scrap flows.

 

Even  G Chokkalingam,  head of research at Equinomics Research, has advised investors to buy silver on a dip and hold for the long term. He expects the prices to see a gradual rise in CY26 amid intermittent corrections.