Silver has got its lustre back but beware the volatility, say experts

After underperforming for 2 yrs, silver has risen in line with benchmark indices but one should limit exposure to it to 5-10 per cent of portfolio

Silver, which is currently trading at Rs 62,110 per kilogram, has rallied around 11.7 per cent over the past three months. Experts say its prospects are bright and this is a good time to enter silver exchange-traded funds or fund of funds (FoFs).

Rallying alongside equities

The equity markets have rallied globally over the past month or so owing to the expectation that the US Federal Reserve will raise interest rates at a slower pace than was expected earlier. “Traditionally, silver has had a high correlation with risky assets like equities. Unlike gold, which moves in an inverse direction, silver