Gold or silver: Which metal offers the better bet now? Ajay Kedia explains

Kedia Advisory's Ajay Kedia on Tuesday cautioned investors about gold at current levels, noting that the yellow metal has already delivered hefty returns. "There is no doubt that this is a safe buying haven, but with a near 50 per cent year-on-year (YoY) return already, we have to be slightly cautious," he told Business Today.

He pointed out that gold witnessed a nearly 10 per cent correction in April, from $3,500 (per troy ounce) to about $3,120. "I think a corrective dip will be a good level to re-enter, around 8–10 per cent. Once we get a pullback, that will be a good level. At current levels, we don't expect it is a great level to re-enter for longer-term returns," Kedia added.

When asked which metal looks more attractive, Kedia leaned towards silver. "Silver is also called a poor man's gold and industrial demand is continuously catching up, whether in solar or EVs. So, I think silver still has the upper hand. In 1980 or 2011, we saw the $50 mark (per ounce), and if we go up to $50, that means here we can easily achieve Rs 145–144 (per gram) due to rupee weakness. I would prefer silver as the gold-silver ratio still suggests silver is quite cheap compared to gold,” he explained.

While the NSE Nifty index has gained a modest 6 per cent this year, precious metals have raced ahead, with gold and silver rallying 44 per cent and 45 per cent, respectively. Over the past 12 months, both have surged nearly 50 per cent, while the Nifty closed at 25,118, down 3.16 per cent.

With the festive season around the corner, select analysts remain bullish on the precious metals pack. For investors, the takeaway is clear: those who diversified into hard assets alongside equities have seen robust returns.