Emkay Wealth says gold, silver rally to continue: How to invest in metals now

Gold and silver are entering a sustained three- to five-year bull phase, driven by macroeconomic trends, structural demand, and evolving investor behavior, according to Emkay Wealth Management in its latest Navigator magazine.

Analysts say the metals’ current rally is fundamentals-driven, marking a departure from past cycles dominated by short-term trading.

Why the rally is gaining momentum

Emkay Wealth points to several key drivers supporting gold and silver:

• Interest rate trends and the US dollar: Expectations of potential interest rate cuts and a softer US dollar have historically boosted precious metals.


• Central bank accumulation: Continued buying by central banks and institutional investors since 2022 has provided durable support for prices.


• Structural demand: Silver is increasingly in demand across renewable energy, electronics, and advanced manufacturing sectors.

“The rally reflects a strategic shift in how investors allocate capital globally,” said Joseph Thomas, Head of Research at Emkay Wealth. “Gold and silver are now being viewed as core portfolio assets rather than short-term hedges.”

How investor behavior is shaping the market

Unlike earlier cycles dominated by speculation, the current uptrend is supported by sustained allocations into gold and silver as part of diversified portfolios. Historical market analysis suggests that the current breakout phase could persist for three to five years, offering long-term investors a window of opportunity.

Indian investors have also benefited from rupee depreciation, which has amplified returns.

How to approach gold and silver now

For existing investors, Emkay Wealth recommends:

• Maintaining measured exposure within diversified portfolios.


• Adding incrementally during market corrections.


• Reviewing allocations if gold and silver together exceed 25–30% of assets, to assess profit booking while retaining strategic exposure.

For new investors, the advice is:

• Adopt a disciplined approach, allocating around 5–10% of overall portfolios.


• Stagger investments to mitigate volatility, using options such as physical gold, gold and silver ETFs, mutual funds, or other metal-linked products.

What could affect the metals’ trajectory

Emkay Wealth notes that future momentum depends on global economic developments:

• Supportive factors: Slowing global growth combined with accommodative monetary policy.


• Potential headwinds: A stronger-than-expected US recovery or sustained dollar strength.


• Currency considerations for Indian investors: Sharp rupee appreciation could moderate gains despite stable global prices.

Analytical takeaway

Gold and silver are being treated as strategic assets rather than tactical hedges. Central bank accumulation, rising industrial demand for silver, and portfolio diversification trends form a strong structural base for the metals. While short-term volatility is inevitable, the medium- to long-term outlook remains constructive for investors seeking diversification, stability, and protection against macroeconomic and currency uncertainty.