Gold and Silver Rally: Should you ‘Buy on dip’ amid market volatility? Check experts strategy | EXCLUSIVE

Gold and Silver Rally: Gold and silver are on the rise, but market volatility remains high. Should investors stick to a buy-on-dip strategy or exercise caution at current levels? Market experts break down the precious metals rally, key triggers, global cues, and smart entry strategies for retail investors. Here’s a quick guide to help you make informed decisions before your next move in gold and silver.

Silver’s dramatic run, followed by a sharp recent fall, has sparked questions about whether the current dip offers a buying opportunity or a reason to wait. On ET Now, experts said silver’s volatility is partly driven by speculative FOMO, but its structural demand story remains intact.

Silver, as various experts pointed out before the panel discussion, is not simply a bullion metal but has strong net industrial demand, particularly amounting to around 56-60 per cent, driven by the automotive industry for EVs, semiconductors, solar cells, and electronics, among others.

“This is a good time to step back and look at the bigger picture,” said one of the panellists, as they further emphasised that governments are today recognising silver as a critical metal.

Leveraging or FOMO-driven money populating the market may have driven prices up and down by a significant margin; however, the uptrend for silver continues and is driven by supply deficits and growing industrial demand, opined the panel.

As to strategic entry, all experts agreed on a staggered entry approach consisting of buying on dips rather than a lump sum entry. This can be done through silver ETFs or physicals as the volatility becomes more stable.

In fact, one expert suggested that silver be kept as part of a diversified portfolio at anywhere between 4 to 5 per cent, aside from gold.

However, gold was reaffirmed as a “true safe haven” by a consensus among panellists. The past performance of gold in times of crisis, be it the 2008 financial crisis or geopolitical tensions, was seen in a positive light.

The purchase of gold by central banks and diversification flows were positive indicators for its long-term price. “Gold is a safe haven, and if you put 10-15 per cent of your portfolio in gold, then it can give you better risk-adjusted returns,” said an expert on ET Now.

When asked whether to buy now or wait, the consensus leaned toward buying on dips, but in a disciplined, staggered manner.

One analyst on ET Now said, “Buy on dips, but let volatility settle and add in tranches rather than all at once.” Another emphasised patience: “Wait for the noise to settle, then invest gradually.”

Altogether, experts suggest that while both gold and silver face short‑term volatility, their long‑term fundamentals justify disciplined accumulation. For investors weighing the dip, a staggered buy‑on‑dip strategy, particularly through ETFs or physical holdings, could be a prudent way to participate in the precious metals rally.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)