2024 There was a tremendous rise in gold and silver. The price of silver crossed Rs 1 lakh per kg. At the same time, gold also crossed Rs 80 thousand per 10 grams. However, later the prices came down due to selling in both the precious metals. Despite this, investors investing in gold and silver made bumper profits. Gold ETFs gave an average return of 20% this year. Whereas, Silver ETF has given an average return of 19.66%. In this way both of them returned the goods. There were around 31 funds in both the categories. Now the question arises that what would be the right bet for investment in 2025. Let us know.
Best performance of HDFC Gold ETF
HDFC Gold ETF, the best performing gold ETF, has given a return of about 20.30% in 2024. Invesco India Gold ETF gave a return of 20.29% during the same period. SBI Gold ETF gave a return of 19.94% in the same period. Axis Gold ETF gave the lowest return of around 19.66% in 2024. Among the 17 silver ETFs in the market, HDFC Silver ETF gave the highest return of 22.02% in 2024. Nippon India Silver ETF returned 20.33% in the same period. UTI Silver ETF gave the lowest return of 18.46% in 2024.
What is the forecast for 2025?
According to experts, gold as an asset class is closely related to market fears. Due to this, central banks around the world are accumulating gold reserves, due to which gold prices are increasing. On the other hand, silver prices have seen significant fluctuations due to the sharp increase in demand. However, bullion market experts talk about giving priority to gold. He believes that gold will see a rise this year also. However, it will not be the same as 2024. It is difficult to predict silver because its price depends on industrial demand. Therefore gold ETFs may be a better bet.
Invest only 10% of the portfolio
Experts recommend that when choosing between gold ETFs and silver ETFs, investors should consider each asset class over different periods. The expert believes that if investors want to invest in commodities and maintain a positive outlook on equities then they should invest only 10% of their portfolio in gold. Gold and silver funds are used for portfolio diversification. If you have a large portfolio, you can set aside a small percentage of the total portfolio (about 10%) to invest in gold and/or silver. If you are just starting out or have a small portfolio, you can skip this. Investors should remember that these funds will not consistently deliver high returns year after year. Their purpose is to provide diversification and add stability to the portfolio.
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