Gold, silver prices: Should you buy precious metals now? Quant AMC’s George Thomas answers

Gold still deserves a place in investor portfolios despite the recent rally, according to Quant AMC’s Fund Manager–Equity, George Thomas, who said the yellow metal remains a useful long-term diversifier at a time when global rate expectations and geopolitical risks continue to shape asset prices. His message was clear: investors should not chase gold indiscriminately, but those with low exposure can still add.

Gold retains strategic appeal

Thomas said Quant AMC’s “house view continues to be positive on gold,” arguing that the expected path of global monetary tightening may turn out to be less aggressive than widely feared. “The rate hikes may not be as steep as what the globe expects. It could be more gradual,” he said, adding that the current geopolitical backdrop also supports the case for the yellow metal.

That view positions gold less as a short-term trade and more as a portfolio stabiliser. In volatile macro phases, such an allocation can help cushion risk without forcing investors to move entirely away from equities.

Also read: Gold allocation explained: Here's how much of your ₹10 lakh or ₹50 lakh portfolio should be in gold

Why silver is a tougher call

On silver, however, Thomas struck a notably more cautious tone. He said the metal is influenced by “a lot of other externalities” and remains heavily tied to industrial demand, making its direction harder to forecast than gold’s.

He also flagged silver’s weaker credentials as a diversification tool, noting that it is “historically not a proven uncorrelated asset” when measured against equities and broader economic cycles. That distinction is important for investors looking beyond headline returns and focusing on portfolio construction.

The 80:20 allocation framework

Rather than advocating aggressive buying, Thomas outlined a disciplined asset-allocation approach. After setting aside an emergency buffer of at least six months of expenses — or 12 months for those with less stable income — he said investors can consider an 80:20 split between equity and gold.

Historically, he said, that mix has worked as “a good diversifier in terms of long-term returns” without taking excessive risk. The advice also comes with a rebalancing discipline: if gold’s recent rally has pushed portfolio exposure well above 20 per cent, trimming makes sense.

What investors should do now

The practical takeaway is nuanced. Thomas said investors who are under-allocated should use the current phase to build exposure. “If your portfolio has less than twenty per cent of gold, it makes sense to add allocation to gold at this point,” he said.