Over the last few weeks, a familiar question has been popping up in conversations with clients, friends, and family:

“Gold has already gone up so much. Should we still do an SIP?”
“Will silver continue to grow?”
“Do gold and silver SIPs even make sense anymore?”

These are valid questions, especially in a world of volatile equities, global uncertainty, and constant social-media noise. Let’s break this down calmly and rationally, from an Indian investor’s perspective.

Why Do We Invest in Gold and Silver in the First Place?

Before asking how to invest, we must be clear about why.

Gold’s role

Gold is not a growth asset like equities. Its primary roles are:

• Portfolio hedge against inflation and currency depreciation

• Stability during crises (geopolitical stress, market crashes)

• Long-term store of value

Historically, gold performs well when:

• Real interest rates are low or negative

• Inflation is sticky

• High geopolitical stress

• Equity markets face uncertainty

Silver’s role

Silver is different.

• It is both a precious metal and an industrial metal

• Demand comes from electronics, EVs, solar panels, and green energy

This makes silver:

• More volatile than gold

• More cyclical

• Potentially higher upside, but also sharper drawdowns

 In simple terms:

• Gold = insurance

• Silver = tactical bet with industrial exposure

Does an SIP in Gold or Silver Make Sense?

Short answer: Yes, but only if your expectations are right.

An SIP is not about predicting prices. It is about:

• Discipline

• Reducing timing risk

• Building allocation gradually

When SIPs work well for metals:

• You want steady accumulation

• You don’t want to time global macro events

• Metals are part of a diversified portfolio, not the centrepiece

When SIPs do NOT make sense:

• You expect gold/silver to “beat equities”

• You are chasing recent performance

• You already have excessive exposure (via jewellery, inheritance, etc.)

How Much Gold or Silver Should One Hold?

There is no universal number, but practical Indian portfolios usually follow:

Key points:

• Gold allocation rarely needs to exceed 10%

• Silver allocation should be smaller and reviewed periodically

• If you own significant physical gold already, reduce financial gold exposure

Gold SIP vs Silver SIP: Which Is Better Today?

Gold SIP

Better for:

• Conservative investors

• Long-term stability

• Inflation protection

Not meant for:

• Aggressive wealth creation

• Short-term returns

Silver SIP

Better for:

• Investors with higher risk appetite

• Tactical allocation to global growth and energy transition

Not meant for:

• Conservative or near-retirement investors

• Large, permanent allocation

Many investors make a mistake by treating silver like gold. It isn’t.

Best Ways to Invest (Avoid Common Mistakes)

Prefer financial forms over physical:

• Gold ETFs / Gold Funds

• Silver ETFs (for tactical exposure)

• Sovereign Gold Bonds (for long-term holding, where liquidity is not urgent)

Avoid:

• Heavy jewellery buying as “investment”

• Leveraged or speculative trading in metals

• Increasing SIP amounts just because prices are rising

The Most Important Question to Ask Yourself

Instead of asking:

“Should I continue my gold or silver SIP?”

Ask:

“Is my current allocation still aligned with my goals?”

If gold or silver has grown beyond its intended allocation due to price rise:

• Rebalance

• Pause or reduce SIPs

• Redirect incremental money to equities or debt as per your plan

Calm, Not FOMO

Gold and silver are supporting actors, not heroes, in a long-term wealth story.

• Gold SIPs make sense for stability and discipline

• Silver SIPs should be tactical and reviewed often

• Neither should be driven by recent price headlines

Smart investing is not about predicting the next move, it’s about staying aligned with your strategy when noise gets loud.

At ARKa Invest, we work with you to do exactly that.