Gold and silver prices saw a powerful rally over the past few months, hitting record highs in January 2026. However, both metals have now entered a correction phase, leaving investors wondering whether to stay invested or book profits.
Over the last 18 months, precious metals have delivered exceptional returns. Gold has surged more than 100% in rupee terms, while silver has jumped nearly 200%, keeping bullion firmly in the spotlight.
This rally was driven by a mix of global and domestic factors — rising geopolitical tensions, shifting US trade policies, inflation worries, strong central bank buying, and volatility in equity markets.
Silver, in particular, outperformed because it plays a dual role: a safe-haven asset during uncertainty and a key industrial metal used in solar panels, electric vehicles (EVs), and artificial intelligence (AI) technologies.
Why Are Prices Under Pressure Now?
After touching peak levels in January 2026, both metals began to correct. International silver has declined about 36.63% from its high, while gold has fallen nearly 7.8%. The sharp pullback has triggered fresh debate among investors about the next move.
According to reports, several wealth managers believe this could be a suitable time for partial profit-booking. Sahil Kapoor of DSP Mutual Fund has suggested that investors who entered during the past 18 months may consider trimming exposure and adopting a cautious stance.
Others recommend a balanced approach. Akshay Chinchalkar of The Wealth Company advises increasing exposure gradually through Systematic Investment Plans (SIPs) rather than investing a lump sum. For new investors experiencing FOMO (Fear of Missing Out), he cautions against aggressive buying at elevated levels and suggests starting with modest allocations instead.