New Delhi, Jan 29 || Investors should consider booking profits on silver and rebalance into diversified Indian equity funds or blue‑chip stocks, a report said on Thursday.
The report from WhiteOak Capital Mutual Fund said that investors should trim precious metals allocation back to a safe‑haven allocation level and stop chasing further upside.
"Book profits on silver, as its current valuation is the most over-extended relative to historical periods. Trim precious metals back to a safe haven level in your total portfolio," the report said.
The mutual fund said that silver’s huge outperformance relative to gold often signals the final speculative phase of a rally and warned that the metal’s current premium leaves it vulnerable to a sharp correction.
"When silver outperforms gold with high velocity or parabolic moves, it often signals the final, speculative stage of a run; one that historically ends against investors’ best interests," the asset manager said.
The current Gold‑to‑Silver ratio has collapsed to about 46:1 versus a 10‑year average near 80:1, the report said. The Gold-to-Silver Ratio (GSR) measures the relative value between the two metals.