Gold or silver ETF: Which one should you buy now amid volatility?

Gold and silver etf

• Gold and silver ETFs rebounded sharply, Tata Silver ETF surged 17%.
• Analysts: Gold offers better near-term stability than volatile silver.
• Brokerages suggest 75% gold and 25% silver for risk-managed investing.

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Gold and silver exchange traded funds (ETFs) have recorded a significant recovery on January 23 to resume their record rally, after a crash during the previous session. Analysts have suggested which precious metal sees more upside amid this volatility.

Tata Silver ETF, which had crashed up to 24 percent yesterday, hitting a low of Rs 25.56 apiece. The ETF rebounded sharply today, rising more than 17 percent to hit the day’s high at Rs 33 apiece. This marks a 29 percent jump from the low hit by the ETF earlier yesterday.

Groww Gold ETF is currently the top gainer among all the gold ETFs. The ETFs jumped 7 percent to trade at Rs 155.97 apiece today. The sharp surge in gold and silver ETFs is a clear reflection of how aggressively investors are repositioning toward safe-haven assets amid heightened global uncertainty, said Justin Khoo, Senior Market Analyst - APAC, VT Market.

Should you buy gold or silver?

Motilal Oswal Financial Services in its latest note highlighted that silver has delivered an exceptional rally of over 200 percent in the past 12 months, sharply outperforming gold’s 80 percent rise during the same period. This made silver one of the strongest-performing assets globally.

However, the domestic brokerage noted that this sharp outperformance of the white metal has led to a significant compression in the gold–silver ratio, which has fallen from pandemic highs of 127 to around 50 at the beginning of 2026.

“This reset suggests that while the long-term outlook for precious metals remains constructive, the near-term risk-reward equation may now be shifting in favour of gold after silver’s outsized run,” Motilal said.

“Silver has delivered sharp outperformance in a short span, and with the gold–silver ratio now near lower levels, the near-term risk-reward is turning more favourable for gold. While we remain positive on both metals and silver continues to have long-term upside backed by industrial demand and tight physical market conditions, the recent rally has also increased near-term volatility. In this phase, a higher allocation to gold can help manage fluctuations while staying invested in precious metals,” said Navneet Damani, Head of Research Commodities and Manav Modi, Commodities Analyst, Motilal Oswal Financial Services.

However, the domestic brokerage emphasized that it does not have a negative view on silver. But, it suggests a risk-managed reallocation strategy after an aggressive up move. It added that silver has become more volatile with sharper price swings, while gold continues to offer relatively better stability—making it a preferred near-term hedge in uncertain market conditions.

Despite the sharp surge in prices, global silver ETFs have seen outflows of over 3 million ounces since the start of 2026, while gold ETFs have witnessed comparatively steadier inflows, reflecting investor preference for more defensive positioning, Motilal added.

The brokerage advises investors a 75 percent allocation to gold and 25 percent to silver, indicating a preference for gold as a relatively steadier hedge in the current environment, while still retaining meaningful exposure to silver’s long-term structural upside.

“Going forward, we believe investors can benefit from a rebalanced precious metals strategy—retaining silver as a long-term structural theme, while increasing gold allocation to manage near-term volatility and capture a potentially stronger risk-adjusted opportunity in the next phase of the cycle,” Damani said.

Long-term investors may consider staggered allocation within asset allocation limits, while short-term traders should remain cautious amid continued volatility, said Aditya Agrawal, Chief Investment Officer at Avisa Wealth Creators.

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