Motilal Oswal: Gold Offers Better Near-Term Risk-Reward After Silver's 200% Rally

• Motilal Oswal Financial Services Ltd (MOFSL) suggests higher allocation to gold due to silver's significant 200% rally over the past year, altering risk-reward dynamics.
• Silver's outperformance led to a sharp compression in the gold-silver ratio, falling from 127 to around 50 by early 2026, indicating a near-term tilt towards gold.
• Navneet Damani and Manav Modi of MOFSL highlight increased volatility in silver after rapid gains, making gold more favorable for near-term risk-reward.
• Global silver ETFs saw outflows, while gold ETFs recorded steadier inflows, reflecting investor preference for defensive positioning.
• MOFSL recommends a rebalanced portfolio with 75% allocation to gold and 25% to silver to manage near-term volatility and capture stronger risk-adjusted returns.

Why It Matters: Motilal Oswal advises rebalancing portfolios towards gold for better near-term risk-reward after silver's massive rally.