Gold or Silver SIP: Where Should You Invest This Festive Season?

Gold is on a roll this year, hitting record highs and reaffirming its status as a safe haven for Indian investors. On Tuesday, spot gold climbed 0.8% to $3,777.80 per ounce, briefly touching $3,790.82, while U.S. gold futures closed 1.1% higher at $3,815.7.

With gold shining bright, silver is quietly gaining attention, especially through Silver SIP s in ETFs. Rajani Tandale, Senior VP at 1 Finance, explains that a silver SIP works much like a mutual fund SIP, but instead of equities or bonds, investors buy into silver. Regular contributions go into a Silver ETF that tracks the metal’s price, eliminating the need to buy or store physical silver. Over time, this approach helps smooth out volatility.

“Think of a silver SIP in ETFs just like a mutual fund SIP, but instead of equities or bonds, you’re buying into silver,” said Tandale.

Why Silver Is in the Spotlight

Festive seasons in India traditionally boost demand for precious metals. Silver, however, gets an extra push from industries like solar, electronics, and electric vehicles. “That mix of cultural and industrial demand is what’s driving interest. With interest rates topping out globally and industrial activity picking up, silver looks appealing. And while no one can perfectly time markets, a SIP lets you spread your entry over months, reducing the worry of getting the timing wrong,” says Tandale.

Gold vs Silver: Stability vs Growth

Gold remains the classic safe haven steady, less volatile, and a hedge against inflation. Silver, in contrast, is more volatile. “It often rises faster in bull markets but can also fall harder in corrections. So, if gold is about stability, silver is about higher growth potential, but with a higher risk,” Tandale notes.

Risks to Keep in Mind

Silver’s sharp price swings and heavy industrial reliance mean global slowdowns in solar or EV sectors could affect its value. Its price is tied to the U.S. dollar, so interest rate shifts and currency changes also matter. Moreover, silver ETFs in India are newer and may have lower liquidity than gold ETFs.

Which Metal Holds the Edge?

Medium-term, silver shows stronger growth potential due to rising demand from technology and renewable energy. Gold, meanwhile, continues to benefit from central bank buying and its safe-haven appeal. Tandale sums it up: “Silver might deliver higher returns if the growth story plays out, but it will also be bumpier along the way.”

Advice for Small Investors

For long-term wealth building, experts recommend a balanced approach. “Gold should form the core because it’s stable and hedges your portfolio. Silver can be added in smaller portions to capture its growth potential. A gold-heavy, silver-light allocation balances safety with opportunity, and using SIPs helps average out the cost over time,” Tandale advises.

With gold at record highs, silver SIPs are emerging as a fresh avenue for growth. A combined approach, gold for stability, silver for growth, offers investors the best of both worlds, all without the hassle of handling physical metals.

Disclaimer: Expert opinions in this article are their own and do not reflect NewsPoint. Consult a qualified financial advisor before making investment decisions.