Silver Is Gold on Steroids: Rally Not Over Yet, but Allocation Should Stay Limited, Says Ajay Bagga

Market expert Ajay Bagga has described silver as “gold on steroids,” highlighting its sharper price movements and higher volatility compared to gold, while cautioning investors to keep their exposure measured despite the ongoing rally.

According to Bagga, silver’s recent surge has been driven by a combination of factors, including expectations of easing global monetary conditions, geopolitical uncertainty, and strong industrial demand from sectors such as solar energy, electronics, and electric vehicles. Unlike gold, which is primarily a store of value, silver carries a dual character as both a precious and industrial metal, amplifying its price swings during bullish phases.

Bagga noted that while the current uptrend in silver prices may not be over, investors should remain mindful of its tendency to correct sharply. He emphasised that silver often outperforms gold during rallies but also underperforms during downturns, making disciplined allocation essential for portfolio stability.

From an investment strategy perspective, Bagga advised that silver should be used as a tactical component rather than a core holding. Limited exposure can help investors benefit from potential upside without taking on excessive risk, especially in a volatile global macro environment marked by fluctuating interest rate expectations and currency movements.

He further added that diversification remains key, with gold continuing to play a more stable hedging role, while silver can provide additional momentum during favourable market phases. Investors, he said, should align allocations with their risk appetite and avoid chasing prices at elevated levels.