Gold, Silver Fund Inflows May Not Last: Anand Rathi Wealth Warns of 'Recency Bias'

• Record gold and silver fund inflows in January are driven by 'recency bias' and are unlikely to continue into February, says Feroze Azeez, Joint CEO at Anand Rathi Wealth.
• Azeez warns against silver as an asset, citing its high volatility due to 'gamma traders' who react to rapid price movements, making it less reflective of real demand.
• He believes the strong inflow momentum for precious metals has peaked, and continued high net flows in February are 'very unlikely' after recent gold price falls.
• Equity flows show a divergence: retail participation is steadily increasing, while HNI money has been 'very volatile' and acted 'exactly the opposite of what was needed'.
• Azeez projects SIP numbers to reach ₹40,000 crore within the next year, aligning with his earlier forecast of ₹50,000 crore per month by FY28.