Bandhan’s new Gold FoF and Silver FoF which follow the launch of respective ETFs last month aim higher than most conversations that distributors and advisors have been having with their clients over the years.
Gold has always been positioned as a hedge that deserves 5-10% allocation in investor portfolios and silver has rarely been spoken of as an asset worth investing in strategically.
Sirshendu says time has come for investors to consider a meaningful 15-20% allocation to precious metals and stresses that both gold and silver deserve places in the core portfolios of investors, given today’s vastly changed investing landscape.
He says that a 15% allocation to precious metals can ideally be split into 10% gold and 5% silver at this stage.
Central banks’ gold buying as part of de-dollarization changes the picture for gold very significantly.
Persisting shortage of silver production vs growing industrial demand has been noticed by markets which are racing to price this in.
After fantastic runs in 2025, one should expect gold and silver to consolidate or maybe even see a reasonable correction – but this in no way diminishes the attractiveness of precious metals in today’s highly uncertain environment.