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Both the precious metals underwent an evident downswing in their rates from January to February 2026.
Invest in a long-term strategy for gold and silver.(Representative Image)
The January-to-February fluctuation in both gold and silver rates came as a reminder to investors about the risks associated with the precious metals. Despite their long-term viability and personal and industrial popularity, both gold and silver aren’t immune to the ups and downs of the market.
According to the Multi-Commodity Exchange of India (MCX), gold and silver prices approached a new high at the beginning of 2026 and reached over Rs 1.75 lakh/10 gm and Rs 3.79 lakh/1kg, respectively. However, the prices took a dip at the start of February. As of February 18, 2026, the gold price fell to Rs 1,51,196/10g, while the silver rates dipped to Rs 2,37,025/kg.
These sharp fluctuations can be a cause of worry and anxiety for younger investors plying their trade in the market. But long-term investors usually don’t panic with these changes, recognising the need to stay put in the market with confidence and clarity. A couple of them have even shared their gold and silver-based strategies for long-term growth over a period of 10 years.
Classic Correlation
Tanvi Kanchan, associate director, Anand Rathi Shares & Stock Brokers, spoke to The Economic Times about the recent fluctuation and emphasised it was a classic case of correlation with the profit share of the market amid a strengthening dollar and recent geopolitical events. According to Kanchan, investors need not overly stress about the minor dip.
“The structural drivers—central bank buying, de-dollarisation, supply deficits, and industrial demand continue to remain, thus for an investor looking at 5-10 years of horizon can add allocation in a staggered manner,” Kanchan said.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd., president of India Bullion & Jewellers Association (IBJA), also chipped in with his inputs on the matter. Kothari stressed that for a 5-10 year investment horizon, rate corrections of around 10-15 per cent can be healthy in the bull period. Kothari advised long-term investors to use such dips to their advantage by gradually accumulating metals in their portfolio and not attempting to time the exact bottom.
Gold/Silver Investment Strategy
The tables below clearly define a sensible investment model for individuals to follow when it comes to gold and silver metals in their overall portfolio.
According to Prithviraj Kothari, conservative or balanced investors shall opt for the divide given below:
|
Asset Class |
Allocation % |
|
Equities |
50-55 |
|
Fixed Income |
25-30 |
|
Gold |
12-15 |
|
Silver |
3-5 |
For moderate or growth-oriented investors:
|
Asset Class |
Allocation % |
|
Equities |
60-65 |
|
Fixed Income |
15-20 |
|
Gold |
10-12 |
|
Silver |
5-8 |
Tanvi Kanchan went even further and provided a risk and profile-based summation for investors willing to stay put over a 5-10 year horizon for gold and silver.
|
Investor Profile |
Rationale |
Allocation % |
|
Conservative |
Wealth hedge, lower volatility than equities, portfolio stabiliser during market corrections, non-correlated asset |
7.5-12.5 |
|
Moderate Risk |
Looking for benefits from a diverse portfolio, inflation protection and more. |
10-17.5 |
|
Tactical/Long-Term Investing |
Fine with higher volatility, focused on the upside potential of assets. |
5-12.5 |
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Delhi, India, India
February 21, 2026, 07:00 IST
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