Investing in gold and silver

Mon June 08 2026

Geopolitical tensions around the world have made gold and silver important assets to have in one’s investment portfolio. But you must be mindful of differences between the two assets.

You would have observed how gold and silver prices have moved in recent times. It is also highly likely you gained from the price movements over the last year. With gold prices near record highs and silver prices very volatile, many appear undecided on the next course of action on the two metals. Should you buy now or wait for a dip? If so, should you buy physical or financial asset? Here, we discuss why market timing on gold and silver exchange traded funds (ETFs) is optimal.

The important decision you should make is whether to buy the physical asset or its financial equivalent viz. ETFs. It is optimal to invest in ETFs for two reasons. One, it is operationally efficient to buy and sell ETFs. And two, gold and silver ETFs closely track the spot price of the underlying metal. True, these ETFs trade at a premium to spot price but you may be able to capture a similar premium when you sell the ETF. Selling price of 24-carat physical gold is typically lower than its spot price.

Source: https://www.thehindu.com