Now Reading: Gold offers better risk-reward than silver, Mirae Asset says
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Gold offers better risk-reward than silver, Mirae Asset says
Gold at Rs 13,287 per gram on August 7, up 7% from July 28, as central bank buying surged 62% in the June quarter to 289 tonnes. Mirae Asset Mutual Fund says…
The Story in Brief
Gold at Rs 13,287 per gram on August 7, up 7% from July 28, as central bank buying surged 62% in the June quarter to 289 tonnes. Mirae Asset Mutual Fund says gold offers a better risk-reward profile than silver, citing robust central bank purchases, resilient Indian ETF inflows worth Rs 6,300 crore, and its safe-haven status. Silver has also risen to Rs 1.33 crore per kg, but remains more volatile despite a sixth consecutive year of supply deficit and rising domestic premiums due to import restrictions. The fund house recommends a staggered investment approach for long-term investors.
The Indian Opinion
The preference for gold over silver is logical now, but it risks ignoring silver's industrial demand and persistent supply deficit. The narrative that gold is always safer can become a self-fulfilling prophecy if investors pile in only to chase past returns. Silver's volatility is real, but its price may spike if the US dollar weakens or industrial demand from solar and electronics surprises. Watch whether silver can hold above Rs 1.3 lakh per kg and whether the Fed keeps rates unchanged, that will test the risk-reward argument.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
