Should You Book Profit in Gold and Silver Amid Record Highs? Experts Say Yes

Gold and silver prices have skyrocketed to all-time highs, leaving investors stunned. With gold hitting Rs 1,54,310 per 10 grams and silver at Rs 3,11,705 per kg (per India Bullion and Jewelers Association), the question burning on every mind is: should you book profit in gold and silver right now? In just 23 days this year, gold jumped Rs 21,115 per 10g and silver Rs 81,285 per kg. As a digital journalist tracking markets, I see this as a wake-up call amid global "Cold War" tensions.

Unexpected Rally Shakes Markets

This surge caught even experts off guard. Aditya Modak, CFO & COO at P N Gadgil & Sons, called it "unprecedented." He didn't foresee prices climbing this fast. Driven by global unrest—like geopolitical flashpoints—investors flock to these safe haven assets. But Modak warns it's not fueled by real demand spikes, making the rally fragile.

Time to Book Profit in Gold and Silver?

Yes, says Modak. Most growth targets are met, so book profit in gold and silver to lock in gains. Sell portions now, especially silver, which is "far more volatile than gold." This strategy protects your portfolio from sudden drops.

• Gold's Stability: Less volatile, but still overextended.
  
  

• Silver's Risk: Wild swings make it prime for profit-taking.
  
  

• Action Step: Redeploy funds into diversified assets like stocks or fixed deposits.
  
  

Correction on the Horizon?

Ajay Kedia, founder of Kedia Advisory, echoes this. Gold nears $5,000/ounce globally, entering a "highly overbought zone." Prices rose too sharply, signaling an imminent gold silver correction. While upside potential lingers, both experts urge caution: secure returns before a pullback hits.

Why It Matters Now for Indian Investors

In India, where gold symbolizes security—especially during festivals and weddings—this rally ties into broader trends. With Madhya Pradesh jewelers reporting frenzy, timing matters. Global tensions amplify volatility, but a correction could erase gains fast.

My Take: Don't get greedy. Book profit in gold and silver partially—say 20-30%—to stay safe. Monitor IBJA updates and global cues. Consult a financial advisor for personalized moves.