Gold vs silver ETFs: Where should investors put their money this Dhanteras? Experts share their strategies

Dhanteras, a significant day in the Diwali festival, is traditionally associated with buying gold, symbolising wealth and prosperity. While purchasing physical gold remains a popular choice, investors can also gain exposure to precious metals through gold and silver exchange-traded funds (ETFs). These investment options allow investors to participate in the price movements of the two metals without the hassles of buying and storing them physically.

With both gold and silver ETFs available, which metal should investors choose this Dhanteras? Should they invest in both or favour one, and what should they consider before making an investment?

Pallav Agarwal, Certified Financial Planner at Bhava Services LLP shared with ETMutualFunds that investors can hold both metals, with a larger allocation to gold and a smaller one to silver as gold is less volatile and can provide stability to a portfolio, while silver is more volatile and can rise faster but also fall much harder.


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He suggests a 3:1 allocation ratio between gold and silver, which means investors can consider allocating three parts to gold for every one part invested in silver.

Nikunj Saraf, CEO of Choice Wealth, told ETMutualFunds that they serve different purposes. Gold ETFs are the lower-volatility, higher-quality holding — a central-bank bid sits underneath them while silver ETFs are higher-beta: more upside in a rally, but this cycle just reminded us they fall roughly twice as hard — silver is down about 57% from its peak versus gold’s 24%.

Saraf further said that for most investors the answer isn’t one or the other — it’s both, weighted firmly toward gold as the core, with silver as a smaller tactical sleeve for those comfortable with the swing.

How have gold and silver ETFs performed since the last Dhanteras?

Since the last Dhanteras celebrated on October 18, 2025, gold ETFs have delivered an average return of 7.71%, with the highest return standing at 8.34% delivered by UTI Gold ETF. Nippon India ETF Gold BeES and Quantum Gold ETF gave the lowest return of around 5.39% each in the same time period.

Silver ETFs have given an average return of 7.92%, while the best-performing scheme, Tata Silver ETF, has delivered around 10.22%. HDFC Silver ETF delivered the lowest return of around 7.40% in the same time period.

According to a report by Monarch Networth Capital, On Dhanteras 2025 (18 October 2025), domestic 24K retail gold was approximately Rs 1,30,860 per 10 grams. Ahead of Dhanteras 2026, it trades around Rs 1,40,000–1,41,500, a YoY gain of roughly 7%–8% which still comfortably beats typical capital-protection baselines in a highly volatile year.

New to precious metals ETFs: Time to invest or wait for correction?

For investors who are new to gold and silver ETFs, the sharp correction from the January highs may raise questions about whether to invest now or wait for prices to fall further.

Saraf said that these investors have largely missed the top — gold is down about a quarter and silver more than half from their January highs, so the speculative froth is already out and he wouldn’t wait for a perfect bottom; would stagger entry through monthly tranches rather than a lump sum.

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For a newcomer, precious metals are a diversifier, not a core bet — roughly 5-10% of the portfolio for most, skewed toward gold. Be especially disciplined with silver: accumulate gradually, and never on leverage, he further said.

Agarwal says there is no need for new investors to wait for another correction, as both metals have already corrected sharply from their January highs. Investors can start investing now and spread their purchases over three to six months to avoid committing the entire amount at one price.

He suggests allocating 10–15% of the portfolio to precious metals, with a higher proportion in gold than silver. The suggested 3:1 ratio can help investors maintain a larger allocation to the relatively less volatile metal while retaining some exposure to silver.

Way ahead for gold and silver

According to a report by ETMarkets, from Dhanteras 2021 to the run-up to Dhanteras 2026, the yellow metal has delivered extraordinary returns, with domestic prices climbing nearly 192%. Domestic prices have risen from around Rs 47,904 per 10 grams in November 2021 to approximately Rs 1,40,000 in late October 2026.

So with a gain of 192% in the past five years, Agarwal said that the long-term outlook for gold and silver after this correction is strong, there are still tailwinds like central bank buying and global uncertainty.

Investors should expect normal returns with some volatility because of very high volatility in the last 1 year, it is tough to give a short-term outlook on precious metals, he further said.

Saraf said that one should temper expectations after 2025, when gold rose nearly 67%. The near-term headwind is clear — a hawkish Fed under Kevin Warsh, around 80% odds of a December hike, and a firm dollar all cap the metals.

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But the structural supports are intact: central-bank buying for gold, a genuine industrial deficit for silver. My base case is steady mid-single-digit to low-double-digit returns for gold and a far bumpier, two-way path for silver. This is a year for consolidation and accumulation — not a repeat of the parabola, he further said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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