Gold and silver can both have a role in an investor's portfolio, but they serve different purposes. Tata Mutual Fund in a note on precious metals said that outlook remains bullish on both precious metals over the medium to long term, while favouring a higher allocation to gold due to its defensive nature and relatively lower volatility.
In this note, the fund house said that a 70:30 allocation between gold and silver may be considered as a broad strategic framework for investors looking to diversify their precious metals exposure as this approach gives a higher weight to gold because of its relatively stable and defensive characteristics, while using silver to capture the metal's longer-term growth potential.
