Gold ETFs Soar 13% Amidst Record Rally; Silver Sees Withdrawals. Why the Divergence?

• Gold ETFs surged by up to 13% becoming investors' top choice, while silver's rise was comparatively subdued despite both metals hitting record highs.
• Gold futures on MCX jumped approximately 9% to a record Rs 1,80,779 per 10 grams, outpacing silver futures which rose about 6% to Rs 4,07,456 per kilogram.
• The divergence is attributed to global uncertainty, high US interest rates, and the gold-silver ratio, making gold a safer haven.
• Investors are withdrawing money from Silver ETFs, while Gold ETFs maintain stable investment, indicating a preference for gold's stability.
• Experts recommend a balanced allocation of 75% gold and 25% silver, acknowledging silver's long-term potential but gold's current stability.

Why It Matters: Gold ETFs outperformed silver due to global uncertainty and gold's safe-haven appeal, despite both hitting record highs.