Gold vs silver in investment portfolio: Expert explains why there should be different review and assessment strategy

Gold prices edged higher at the start of the week on Monday, 26 October, due to lower oil prices and as investors await the United States Federal Reserve's policy decision later this week, according to a Reuters report.

As per the report, spot gold rose 0.3% to $4,008.70 per ounce today, after hitting its lowest level since mid-July in the previous session. Bullion posted a 4% weekly fall on Friday, its steepest weekly decline since June. US gold futures for December delivery gained 0.3% to $4,021.90, it added.

“The jump that we've seen is mostly symptomatic of the kind of relief provided by a lower oil price, but one that could easily be capped as markets position for the FOMC decision in a couple of days' time. Gold will continue to trade as a function of interest rate expectations and geopolitical risks,” Kyle Rodda, senior financial market analyst at Capital.com told the publication.

Meanwhile, among other metals, spot silver rose 0.2% to $54.00/oz, platinum dropped 0.3% to $1,546.18 and palladium fell 0.5% to $1,038.85, it added.

In W by Groww’s latest Capview report, ‘Paid to Wait: September 2026 Review’ Nirav R Karkera, Head of Research and Sagar Shinde from the Research Desk noted that for data analysed till 31 September 2026, while gold and silver both fell, the former's role as a portfolio hedge remains relevant amid geopolitical risks and central-bank demand. This is why investors need to assess gold and silver investments in their portfolio differently.

According to the report, gold lost 6.3% in September as the US 10-year yield crossed 5.3%. “A zero-yield asset is costly to hold when cash pays this much. Gold cost money in a rate shock. We still hold it for the tail,” it said.

It however noted that gold has a floor under it. “Central banks are still buying, 44 tonnes in July. Attacks on Saudi exports keep the geopolitical tail alive, and that tail is why gold is in the portfolio,” it added.

The Groww report noted that experts are still tracking the metals. For gold, they await the gold exchange-traded funds (ETFs) flows turning positive. While for silver, they are watching for a confirmed price base, the ratio moving above 80 to 85, and a large and a large buyer stepping back in.

“Our stance: Hold gold as insurance against a geopolitical tail. We are not adding for returns. Avoid silver. The gold-silver ratio is about 69, below the 80 to 85 zone where silver has historically been cheap against gold,” the report added.

The logic is that safe haven asset, gold, is being held as insurance, and even “insurance that has not paid out this year is still insurance”.

Geopolitical situation also make gold lucrative, it added. “With the Gulf unresolved, this is the wrong time to cancel the policy.” The strategy it explained is to keep gold sized for protection and global equity held for the rupee, while silver stays out until the ratio turns cheap.

Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br> She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br> Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art. <br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>

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