Gold, Silver Funds Soar 212% in a Year: Should Investors Bet on Commodities?

• Gold and silver funds, including ETFs and Fund of Funds, have delivered exceptional returns, with silver funds surging over 200% and gold funds over 80% in the past year.
• Silver surprised with a 212.71% return, significantly outperforming equity large-cap (9.12%), mid-cap (6.63%), and small-cap (-2.83%) funds.
• The strong performance is attributed to increased demand for safe investments, with silver benefiting from both industrial and speculative demand.
• Investment opportunities in diversified commodities are limited in India, primarily focusing on gold and silver funds or shares of metal/mining companies.
• Experts advise investors to consider asset allocation, with aggressive investors allocating 5-10% to precious metals for diversification and protection against inflation and geopolitical risks, rather than for maximizing returns.

Why It Matters: Gold and silver funds delivered massive returns, but investors should prioritize diversification over maximizing gains.