Precious metal ETFs: Avoid overexposure after gold, silver price surge

Limit allocation to 10 per cent of portfolio and enter with 7-10-year horizon

Gold and silver exchange-traded funds (ETFs) saw record net inflows of ₹4,085 crore in June 2025. Gold ETFs received ₹2,080 crore, while silver ETFs attracted ₹2,005 crore. After the sharp price rally in these ETFs in recent times, experts suggest avoiding overexposure to them.

 

Price Performance Driving Inflows

 

Gold prices have risen steadily over the past two years, a major driver being sustained buying by central banks. Recent price performance has been a major driver of flows.

 

“Gold prices rose in June. Also, growing uncertainty led investors to view gold as a safe haven,” says Satish Dondapati, fund manager, Kotak