Gold or silver in 2026? Experts share allocation strategies after record gains

After a blockbuster year in 2025 that saw both gold and silver deliver strong returns, the spotlight now shifts to how investors should approach the precious metals in 2026. Silver prices soared 170% in 2025, marking a remarkable rally in the precious metals segment, while the yellow metal also registered a strong performance, rising 76.5% during the year.

With macroeconomic uncertainties, shifting monetary policies, and evolving market psychology, analysts and strategists are weighing in on how to allocate gold and silver in investment portfolios as the new year unfolds.

According to Ross Maxwell, Global Strategy Operations Lead at VT Markets, the gold versus silver debate in 2026 will largely depend on whether global markets prioritise growth or stability.

He notes that gold is likely to remain supported by factors such as interest rate expectations, elevated government debt levels, and geopolitical tensions.

“Any move toward lower real interest rates would reduce the opportunity cost of holding gold, while persistent fiscal imbalances could undermine confidence in fiat currencies,” he said, reinforcing gold’s strategic value.

Maxwell also flagged central bank policy as a major influence this year. He said that rate cuts or a slowdown in quantitative tightening could push real yields lower and support gold prices further. On the other hand, if real yields stay high and monetary policy remains credible, gold’s price action could shift to a range-bound trajectory.
In contrast, silver continues to carry higher volatility, primarily due to its strong link to industrial demand across manufacturing, electronics, and clean energy sectors. Maxwell pointed out that this gives silver a more aggressive upside potential during strong economic growth or reflationary periods, but it also exposes it to sharper corrections during slowdowns.Jigar Trivedi, Senior Research Analyst – Currencies & Commodities, at Reliance Securities, highlighted some of the key drivers for gold, including strong safe-haven demand during geopolitical risk episodes, robust central bank net purchases (especially in Asia), and trends in inflation hedging and de-dollarization.

However, he cautioned that if global economic momentum unexpectedly strengthens or if real yields rise sharply, gold’s premium could compress.

Silver, meanwhile, is expected to benefit from investment demand growth and speculative flows, including ETFs. But it also comes with its own set of headwinds, with Trivedi stating that silver “historically displays higher volatility due to industrial and investment duality.”

Gold vs silver: which one should you buy in 2026?

From a portfolio allocation perspective, both gold and silver are viewed as valuable components, but their roles differ.

Gold is often seen as a defensive asset, offering consistency, stability, and long-term wealth preservation. Silver, on the other hand, is considered more tactical in nature, offering higher upside potential but at the cost of greater volatility.

“Ultimately, for 2026, gold remains better suited for risk management and portfolio protection, while silver may appeal to investors with a higher risk tolerance seeking growth-linked exposure,” notes Maxwell.

The consensus emerging from experts like Trivedi is that investors may benefit from owning both metals, treating gold as a hedge and silver as a growth play. A sample allocation strategy suggested in one note was a 60:40 split in favour of gold, acknowledging its macro support while still leaving room for silver’s growth-linked exposure.

Key macro themes expected to shape the 2026 outlook include monetary policy and real yields, geopolitical risks, industrial growth linked to the green transition, and post-2025 market psychology. In such a dynamic environment, precious metals are expected to continue playing a crucial role in diversified investment portfolios.

Also read: Gold, silver or stocks in 2026? How to invest Rs 10 lakh in new year for balanced returns

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