Adding Silver to Your Portfolio on Akshaya Tritiya: A Diversification Opportunity?

Investors Eye Silver for Higher Returns on Akshaya Tritiya

The upcoming Akshaya Tritiya on 19 April 2024 presents a compelling opportunity for investors to diversify their portfolios with silver, a metal that has seen a massive 165% rise since the last Akshaya Tritiya on 30 April 2025. This significant growth outpaces the 63% rise seen in gold prices, making silver an attractive addition to the precious metals basket.

Silver's dual role as both a precious and industrial metal gives it higher beta potential, particularly if industrial demand strengthens alongside geopolitical stability. On the Multi Commodity Exchange (MCX), silver prices are trading at ₹252,800 levels. While the returns are steep in almost a year, the metal is significantly down by over 40% from the recent peak of ₹4,39,000, on the back of profit taking and fears that geopolitical conflict could derail economic growth and impact industrial demand.

Analysts suggest that investors should maintain a core holding of gold, supported by a tactical allocation to silver. Kaynat Chainwala, AVP Commodity Research at Kotak Securities, recommends allocating 75-80% of the precious metals basket to gold, while silver can form a 20-25% tactical allocation, accumulated selectively and held with a 2+ year horizon. Harshal Dasani, Business Head at INVasset PMS, cautions that though silver can offer higher returns, it also witnesses sharper volatility.

| Metal | Returns Since Last Akshaya Tritiya (30 April 2025) | | --- | --- | | Gold | 63% | | Silver | 165% |

The Silver Institute and Metals Focus expect the global silver market to remain in structural deficit for a sixth straight year in 2026, with the deficit widening to 46.3 million ounces from 40.3 million ounces in 2025. Despite this, coin and bar demand is projected to rise 18%, and total supply is expected to fall 2%, affirming a strong outlook for the white metal.

The outlook for gold looks promising, with a 10-15% upside likely in the next one year. Chawal suggests maintaining a gold allocation of 8-15% of the portfolio remains prudent as it strikes the right balance between capturing safe-haven benefits and avoiding overexposure. Driven by sustained central bank and investor buying amid persistent macroeconomic and geopolitical uncertainties, gold has reaffirmed its status as the pre-eminent safe-haven asset.

| Analyst | Gold Price Target for Next One Year | | --- | --- | | Deveya Gaglani, Senior Research Analyst- Commodities, Axis Securities | $5,300-$5,500 | | Deveya Gaglani, Senior Research Analyst- Commodities, Axis Securities (Domestic Market) | ₹1,70,000-₹1,85,000 |

In conclusion, investors are advised to look beyond gold and consider silver as a strategic addition on Akshaya Tritiya, while maintaining a core holding of gold.