Gold-Silver Buying: Should investors buy the dip?
Gold and silver prices have been rising continuously for the past two days. Silver has climbed to ₹64,000, while gold prices have increased by about ₹22,000, but these metals are still significantly below their record highs.
Gold-Silver Buying: In the last few days, gold and silver prices have seen a sharp decline, but now they are showing a continuous upward trend. In the commodity market, these precious metals have shown a good increase in the last two days, which has left investors confused about what to do with gold and silver now?
On Wednesday, by 7:30 PM, April futures gold on the Multi Commodity Exchange (MCX) was trading at ₹1,59,331 per 10 grams, up by ₹5,522 or 3.59%. On the other hand, March futures silver was at ₹2,89,293, up by ₹21,278 or 7.94 percent.
How much have gold and silver rates increased after the fall?
Two days ago, a sharp decline dominated gold and silver prices, causing gold and silver to touch their bottom, and then a spectacular rise began. On Monday, gold prices fell to ₹1.37 lakh, but now they are at ₹1.59 lakh, meaning gold prices have increased by ₹22,000.
Similarly, the price of silver fell to ₹2.25 lakh on Monday, but then it rose and is now at ₹2.89 lakh. This means that silver has jumped by ₹64,000 in two days.
Why did gold and silver prices fall?
When gold and silver reached their record high levels, profit-taking began. Continuous profit-taking by investors led to increased selling pressure on gold and silver prices, causing them to fall.
A stronger dollar puts pressure on commodity prices. The dollar strengthened recently, contributing to the decline in gold and silver prices.
What should be done now?
Experts say that this decline was due to profit-taking, making it a temporary dip. From a long-term perspective, the demand for gold and silver remains strong, and buying can be considered for the long term. However, in the short term, it might be prudent to wait for further declines.
Summary
Experts suggest that investors should follow a "buy the dip" strategy. They can increase their gold and silver holdings during any price dips. They can also allocate 10 to 20 percent of their portfolio to gold and silver. This can be a good strategy to protect against significant losses.
