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BULLION YEAR 2025


Hello Friends,

There have been many market events from last Diwali to this Diwali. One notable highlight has been the strong performance of Gold & Silver, surpassing all other asset classes. We have witnessed historic movements in bullion rates, making those who invested a substantial amount proud while others regret not investing in Gold & Silver due to FOMO.

The million dollar question now is whether to buy at the current level or hold investments and potentially book profits. No one knows for sure and everyone is waiting with bated breath. In my opinion, it is best to keep a low anxiety level and remain invested if you have already put in a decent amount. Resist the temptation to book profits and instead maintain a long-term horizon as a safe haven.

At the same time, many of us may feel frustrated for not investing in Gold & Silver. However, it is important not to let that frustration get the best of us. Keep a close watch and consider starting a SIP (systematic investment plan) once there is a correction from the high levels. It is possible that we may see a 10-15% correction at some point, but the long-term trend for both Gold & Silver remains bullish.

For Gold, the reason for its popularity is not just as a hedge but also due to prevailing geopolitical conditions and people's lack of trust in currencies such as the dollar, pound or euro. This makes Gold an attractive investment for protection against any adverse situations in the global economy.

As for Silver, its real demand exceeds its supply due to its growing use in various industries as a critical raw material. This industrial demand is expected to continue for several decades unless a substitute is invented. Recently, Silver broke an all-time high record achieved back in the 80s, signaling its multi-decade high achievement with strong reasons behind it - mainly demand-supply dynamics. We may see even higher highs for Silver in the coming years.

In the short term, there may be a pause in both metals and a reasonable correction may occur. This could be the right time to enter again through SIP mode.

We are currently witnessing a multi-year bull run in the commodity super cycle. Other commodities such as palladium, platinum, and copper are also likely to participate in this rally. However, it is important not to jump to conclusions and assume that all will continue to rise indefinitely.


WISHING YOU HAPPY DIWALI
RAJENDRA JHANWAR 




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