Gold, silver and the new wealth strategy: What's changing for investors

Gold and Silver Rally On: Experts Recommend Staying Invested, Not Chasing Returns

Gold and silver have delivered spectacular returns over the past few years, but wealth managers believe the rally may be far from over. According to Emkay Wealth Management, precious metals continue to enjoy strong structural support despite bouts of volatility triggered by Middle East tensions, shifting expectations around US interest rates and periodic strength in the US dollar.

 

Gold, after briefly crossing levels above $5,000, is currently trading near $4,500. Silver has similarly rebounded from about $ 72 to around $77, reflecting continued underlying demand despite short-term corrections.

 

Emkay Wealth said the medium- to long-term outlook for both metals remains constructive, supported by macroeconomic uncertainty, sustained central bank accumulation, and steady institutional allocation flows.

 

 

The firm argued that the current bull run differs from previous commodity cycles because it is being driven less by speculation and more by long-term portfolio allocation decisions by central banks, institutions and individual investors.

 

“Gold and silver are increasingly being viewed as strategic portfolio assets rather than short-term trading instruments. The current trend is driven more by structural allocation demand than speculative positioning,” Emkay Wealth Management said.

 

From Safe Haven to Core Portfolio Asset

 

Traditionally, investors have turned to gold during periods of uncertainty.

 

This time, however, wealth advisers say the story is bigger.

 

Since 2022, central banks around the world have been buying gold at one of the fastest paces on record as countries seek to diversify reserves away from the US dollar. At the same time, institutional investors have increased allocations to precious metals amid concerns about global debt levels, geopolitical tensions and currency risks.

 

The result is a demand base that appears significantly more durable than in previous rallies.

 

While gold remains the preferred hedge against uncertainty, silver is increasingly emerging as a dual-purpose asset.

 

Unlike gold, silver benefits from both investment demand and industrial consumption.

 

The metal is a critical component in solar panels, electric vehicles, electronics and clean-energy infrastructure. As countries accelerate their energy-transition plans, demand for silver is expected to rise substantially over the coming decade.

 

That combination of industrial demand and investor interest has helped silver outperform many traditional asset classes during recent periods.

 

The firm highlighted that its gold fund recommendations were initiated in FY22–23 and reiterated through FY23–24 and FY24–25, while silver fund allocations were introduced from February 2025. Investors maintaining exposure over this period have benefited from both price appreciation and currency depreciation.

 

Structural Drivers Remain Intact

According to Emkay Wealth, expectations of further US Federal Reserve rate cuts remain a key support factor, as they could weaken the US Dollar and improve bullion attractiveness. Continued central bank buying since 2022 has further strengthened the long-term price base. Both gold and silver have also seen a multi-year technical breakout following nearly a decade of consolidation, reinforcing the broader bullish structure. Silver additionally benefits from rising industrial demand linked to clean energy transition and manufacturing applications, while gold continues to gain traction as a diversification hedge amid concerns over US fiscal and currency stability. 

Unlike previous cycles dominated by speculative flows, the current rally is largely allocation-driven, which enhances its sustainability, the firm noted.

 

Outlook and Key Levels

• Emkay Wealth expects strong support for gold below $ 4,000, with key levels at $ 3,890 and $ 3,510. Upside targets remain at $4,800 and $ 5,200.
• For silver, near-term corrections could extend toward US$ 74 and US$ 62, while medium-term upside targets are seen at US$ 92 and US$ 110. However, the firm cautioned that the pace of gains may be moderated by inflation trends, the trajectory of US rate cuts, and movements in the US Dollar.

 

Investor Strategy

• For existing investors, Emkay Wealth recommends maintaining current allocations and deploying incremental investments on market dips. 
• Investors with elevated gold exposure of 25–30% are advised to review portfolios for potential rebalancing.
• For new investors, a phased investment approach is recommended, with gold allocation of 5–10% depending on risk profile. 
• Options include physical gold, gold ETFs, gold and silver funds, structured gold-linked products, and global gold mining funds.

 

“Gold and silver should always be a part of an overall portfolio allocation… As precious metals are now evolving in terms of its investment perspective both on de dollarization of reserves across central banks world over and actual usage from consumption and industrial demand…Both warrant a position in the portfolio between 10-15 percent in terms of allocation and the returns expectation should rationalize after a break out run in them to 9-10 percent” said Vivek Choksey Senior Vice President and Zonal Head – Ahmedabad, Emkay Wealth Management.

 

Allocation guidance varies by risk appetite: 

• Conservative investors up to 5%
• Moderate investors 10–15%
• Aggressive investors up to 20% or more on a tactical basis, subject to periodic review.
• The firm also emphasized a minimum investment horizon of three years to optimise post-tax returns and reduce volatility impact.