After record rally in gold & silver, experts urge investors to book profits

In light of a significant surge in gold and silver prices over the past 18 months, experts are advising investors to consider taking profits. Gold has risen by 101% in dollar terms and 116% in rupee terms, while silver has experienced an even more remarkable increase of 167% and 198%, respectively. As these precious metals have seen substantial gains, wealth managers caution against holding large positions, suggesting that the current market dynamics may not justify further substantial investments. Analysts, including Sahil Kapoor from DSP Mutual Fund, recommend that investors who entered the market during this rally should now consider liquidating a portion of their holdings. Although the recent pullback in prices for both metals—gold down 7.8% and silver down 36.63% from their January 2026 peaks—may seem appealing, strategists advise caution. They recommend a staggered investment approach, such as Systematic Investment Plans (SIPs), instead of lump-sum investments. The surge in demand for these metals has been driven by geopolitical tensions, inflation, and industrial applications, particularly for silver. With recent inflows into gold and silver funds surpassing those of equity funds, experts warn against crowding into these markets at this juncture, advocating for a more measured investment strategy.