2 hours ago
HomePersonal Finance NewsGold and silver investments: WhiteOak Capital MF explains when to reassess exposure
WhiteOak Capital Mutual Fund reports silver’s rapid surge versus gold, with the Gold-to-Silver Ratio at 46:1. Investors are urged to review allocations and consider equities for balanced portfolios.
By Anshul January 29, 2026, 3:41:10 PM IST (Published)
2 Min Read
Gold remains a steady indicator of global economic and geopolitical trends, but silver’s sharp surge is drawing attention, according to a new report from WhiteOak Capital Mutual Fund titled “Gold is Talking, Silver is Screaming: A Case for Prudent Repositioning.”
The report explains that gold traditionally reflects macroeconomic health, currency trends, and systemic risks. Silver, however, has recently outperformed gold at a rapid pace—a pattern the report describes as entering a highly speculative phase. Historically, such surges have often been followed by corrections.
WhiteOak notes that the relative movement suggests investors may benefit from reviewing their allocations rather than chasing short-term gains.
Silver’s outperformance in focus
A key measure highlighted is the Gold-to-Silver Ratio (GSR), which compares the relative price of the two metals. Currently, the ratio is around 46:1, well below its 10-year average of approximately 80:1.
The report points out that historically, such a low ratio has coincided with periods where silver corrected faster than gold.
While a weakening rupee can make metals more attractive, the report emphasizes that currency trends alone do not prevent sharp declines during speculative spikes.
Comparing metals and equities
WhiteOak also examines the opportunity cost of holding metals at elevated levels. Unlike equities, gold and silver do not generate cash flows. In contrast, companies in the Nifty 50 reinvest profits, distribute dividends, and offer potential for capital appreciation.
The fund house highlights that since inception, the Nifty 50 Total Returns Index has matched or exceeded gold’s compound annual growth rate of roughly 13.2%, while providing higher liquidity. Tax incentives—such as the ₹1.25 lakh annual exemption on long-term capital gains from equities—also differentiate equities from physical metals.
Suggested portfolio considerations
The report outlines a measured approach:
Silver valuations appear stretched, while gold is relatively stable.
Historically, late-stage silver rallies have often preceded corrections.
A balanced allocation between metals and other assets, including equities, could reduce exposure to sudden swings.
WhiteOak’s report frames the current market as a period for assessment and strategic repositioning rather than chasing momentum, noting that gold and silver movements are divergent.
