A few months ago we were debating who would touch the Rs 1 lakh mark first - BSE Sensex or gold? On April 22, the price of gold put a stop to this as its price crossed Rs 1 lakh per 10 grams on that day. But along with gold, there is a need to look at silver as well. You must have seen that in recent times, investors are increasingly interested in investing in gold and silver. But today we are going to tell you through this news whether the time has come to include silver in the portfolio.

What boosts gold, and silver prices?

The history of gold shows that prices remain dormant for long periods, followed by sudden volatile surges - as we are seeing now - that take long-term returns back to historical averages. What is the reason behind these surges? However, the price of gold is affected not only by demand and supply but also by geopolitical events. Unlike gold, silver is both a precious and industrial metal.

In uncertain times, it acts as a haven, although to a lesser extent than gold. In stable periods, it behaves like a base metal, driven by industrial demand. Generally, gold leads the movement during market turbulence, followed by silver.

Silver is more volatile.
Typically, gold leads the market movement during market turmoil, followed by silver. However, silver is far more volatile, often volatility two to three times greater than gold. If you have a small allotment, consider adding gradually. If you think silver's best days are ahead and you are comfortable with its high volatility, a larger allotment can be considered, provided it is in line with your risk appetite. So before you invest in silver, think deeply, look at the data, and let your asset allocation decide how much to add to your portfolio.

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