At about $70, silver has dropped 42% from its peak price of $121. Gold has also suffered; it is currently down 17% from its peak of $5,602, selling at about $4,666.
The recent decline in both metals has confused a lot of investors. Their gold and silver portfolios are currently losing money for those who joined the party later. How, though, could that be? In 2025, gold had increased by 65%, and since 2023, it had increased by more than 20%.
The specific way that FOMO manifested in the Indian setting is demonstrated by recent data. Gold ETF net inflows reached Rs 11,646 crore in December 2025, more than three times the Rs 3,741 crore in November.
If that seems like a lot, the figures from January 2026 were even more startling. According to AMFI data, Indian investors invested more in gold ETFs than in equity funds for the first time. Your allocation automatically decreases when gold prices correct, which is frequently a good time to make a purchase. Reducing your position aids in returning the initial allocation when prices spike.
Long-term portfolio performance is determined by “asset allocation,” not by stock selection or market timing, according to numerous studies. Depending on your financial objectives, risk tolerance, and investment horizon, the majority of financial advisors advise allocating 10–15% of your portfolio to gold in addition to stocks and debt.
When world economies falter, currencies depreciate, and geopolitics dominates the news, gold tends to shine. Nowadays, a lot hinges on the outcome of the Iran conflict and the final location of oil prices.
Gold is not influenced by any one cause. It is pulled in several directions simultaneously by several economic data points. Oil is currently the anchor that concurrently shapes the dollar, interest rates, and inflation.
By the time you achieve your objectives a few years from now, none of it—not even the oil-dollar-inflation equation, dips, or crashes will worry you if you have an asset allocation plan in place and are purchasing in a staggered, disciplined manner.
