What Investors Must Consider While Investing in Gold or Silver This Dhanteras

Dhanteras — the festival that marks the beginning of Diwali — is traditionally associated with the purchase of gold and silver. For millions of Indian households and MSME business owners, buying precious metals on this day is not just auspicious but also seen as a sound financial move.

In 2025, with global market volatility, inflationary pressures, and geopolitical uncertainties, the role of gold and silver as safe-haven assets has once again taken center stage. But before making any festive investments, it’s important to understand what factors matter most this Dhanteras.

1. Gold Prices Are Near Record Highs — Is It Still a Good Buy?

Gold prices in India have been hovering close to ₹71,000 per 10 grams (24K) in October 2025, driven by global demand, central bank buying, and the ongoing slowdown in Western economies.
However, experts believe that gold’s long-term value remains strong due to the following factors:

• Global economic uncertainty: Central banks continue to diversify their reserves with gold, boosting its stability.

• Weaker rupee: The depreciation of the Indian rupee against the US dollar adds a domestic premium to gold prices.

• Retail and digital gold demand: Increasing acceptance of digital gold platforms and gold ETFs has made gold more liquid and accessible.

👉 Investor Tip: Allocate only a portion (10–15%) of your portfolio to gold. Use staggered purchases or SIPs in gold ETFs to manage volatility.

2. Silver — The “Poor Man’s Gold” With a Tech Twist

Silver, historically considered a secondary investment metal, has evolved into a strategic industrial asset. With applications in solar panels, EV batteries, and 5G electronics, silver is no longer just a decorative commodity.

In 2025, silver prices have been more volatile than gold but have delivered better percentage returns year-on-year. Silver’s industrial demand is expected to grow over 25% in the next two years, according to various global commodity reports.

👉 Investor Tip: Silver is ideal for investors with higher risk tolerance. Consider silver ETFs or physical bars rather than jewelry to minimize making charges.

3. Physical vs Digital Investments: Which Is Better for MSMEs?

While traditional buyers prefer physical gold and silver coins or ornaments, digital investment platforms are gaining traction. MSME owners and entrepreneurs, who often prioritize liquidity, may find these modern options more practical.

Options to Consider:

• Sovereign Gold Bonds (SGBs): Issued by the RBI, offering 2.5% annual interest plus price appreciation.

• Gold ETFs / Silver ETFs: Easily tradable, low storage risk, ideal for portfolio diversification.

• Jewelry and Coins: Suitable for cultural purchases but not efficient for investment due to high making charges.

4. Market Outlook for 2025–26: What Analysts Expect

Analysts predict that both gold and silver could maintain an upward trajectory if inflation persists and global interest rates remain high.

• Gold price outlook (12 months): ₹75,000–₹78,000 per 10g (subject to USD-INR exchange rate).

• Silver price outlook (12 months): ₹95,000–₹105,000 per kg.

These estimates are indicative and based on global commodity trends and domestic inflation projections.

5. Key Considerations Before You Buy

Before you invest this Dhanteras, consider the following checklist:

✅ Check purity and hallmarking for physical gold and silver.
✅ Compare buy–sell spreads and making charges.
✅ If buying digital gold, ensure the platform is RBI or SEBI registered.
✅ For MSMEs, consider SGBs or ETFs to maintain liquidity and accounting transparency.
✅ Always align your investment with financial goals — wealth preservation, diversification, or long-term savings.

Conclusion: Shine With Wisdom, Not Just Tradition

This Dhanteras, whether you buy a few grams of gold or a few kilos of silver, make sure your purchase aligns with your financial strategy, not just festive emotion. For MSME entrepreneurs, precious metal investments can act as a safety buffer, collateral, or diversification tool — provided they’re chosen wisely.

As India’s economy grows stronger, gold and silver continue to symbolize not just prosperity but prudent planning.

Happy Dhanteras from Team SMEStreet!

Disclaimer

This article is for informational and educational purposes only and does not constitute financial advice. Please consult a certified financial advisor before making any investment decisions.