Gold, silver ETFs rise up to 30% from Thursday's lows as record precious metal rally extends: Should you buy here?

Gold and silver ETFs

• Gold and silver ETFs rebounded sharply after steep losses on January 22
• Tata Silver ETF surged 17 percent, recovering from a 24 percent crash
• Experts advise gradual ETF purchases due to volatility and geopolitical risks

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Gold and silver exchange traded funds (ETFs) rebounded sharply on January 23, recovering strong losses which were recorded earlier yesterday. Experts have commented on whether the rally in the precious metals will continue, and what lies ahead.

Notably, today’s sharp recovery in ETFs come as precious metals soared to fresh all-time highs. The ETFs however are still away from their 52-week highs, which they had hit a day before yesterday before taking a breather from the rally.

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 ETFs now?

Speaking about yesterday's crash, Prasenjit Paul, Equity Research Analyst at Paul Asset & Fund Manager at 129 Wealth Fund said that what unsettles investors on days like yesterday is not the fall in gold or silver, but the illusion of stability that ETFs create. “Precious metals are volatile assets, ETFs make them feel tradable like stocks, encouraging investors to react to daily price moves. The real risk is owning them without clarity on allocation or purpose or without a proper entry-exit plan,” he explained.

Precious metals experienced sharp volatility in late December 2025 and early January 2026. Despite price swings, the fundamentals of precious metals are compelling, driven by near-record industrial demand from solar panels, electric vehicles and AI infrastructure, said Tanvi Kanchan, Associate Director at Anand Rathi Share and Stock Brokers.

“Given the current geopolitical landscape—from ongoing conflicts in the Middle East and Ukraine to U.S.-China tensions and uncertainty around trade policies under the new Trump administration—precious metals maintain their relevance as portfolio hedges. However, after such explosive gains in 2025, timing a single-entry point is treacherous,” the analyst said.

According to Kanchan, investors should consider spreading purchases over the coming weeks or months, instead of deploying capital all at once. For conservative investors, allocating 5-10% of portfolios to precious metals ETFs through systematic purchases reduces timing risk while maintaining exposure to an asset class that benefits from geopolitical instability and monetary policy uncertainty, she said.

While the momentum remains intact, such elevated levels also increase the risk of short-term volatility and profit-taking, cautioned Khoo. The analyst added that ETF demand still suggests investor conviction in precious metals as a strategic hedge remains robust.

Gold or silver?

Motilal Oswal believes the gold looks more favourable now, after silver's massive rally. "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," said Navneet Damani, Head of Research Commodities and Manav Modi, Commodities Analyst, Motilal Oswal Financial Services.

The analyst said that in this phase, a higher allocation to gold can help manage fluctuations while staying invested in precious metals.

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