Silver and gold outpace Sensex as investors hunt for shelter in Samvat 2082

Investors who parked money in precious metals came out on top in Vikram Samvat 2082, the year that ran from last Diwali to this one. Silver climbed 31.1% and gold rose 10.2%, while the Sensex fell 12.1% over the same stretch, leaving equity holders nursing losses.

The pattern points to a year shaped by geopolitical strain, swinging crude oil prices and steady selling by foreign institutional investors. Those pressures pushed money toward assets seen as insurance against uncertainty. Silver and gold were the clear beneficiaries, even though silver has recently cooled below the Rs 2 lakh per kg mark and gold has hovered between Rs 1.4 and Rs 1.5 lakh per 10 grams.

Equity mutual funds told a more mixed story. Small-cap funds were the standout, returning 5.19% for the year and beating mid-cap, multi-cap and flexi-cap schemes. Mid-cap funds slipped 1.19%, multi-cap funds dropped 1.25% and flexi-cap funds declined 3.94%. Bank fixed deposits, which returned 6.25%, outpaced the Sensex and most equity fund categories, a reminder that steady, low-risk options can look attractive when markets wobble.

Market strategist Jayesh Vithalani, a financial consultant, argued that the year marks a move away from momentum-led buying toward more selective allocation in Samvat 2083. In his view, the drop in frontline indices reflects heavy outflows and expensive crude rather than a structural collapse, and strong domestic liquidity continues to support mid- and small-cap stocks. Haresh Acharya of the India Bullion and Jewellers' Association pointed to central bank purchases, inflows into gold exchange-traded funds and softer confidence in the US dollar as drivers of the metals rally, with silver also helped by solid industrial demand.

The broader economy offers some cushion. The economy is estimated to grow about 7% in FY2026-27, GST collections are running near Rs 2 lakh crore, and several listed companies reported earnings growth above 12%. Perhaps the most encouraging figure is that monthly systematic investment plan contributions hit a record Rs 32,500 crore, a sign that everyday domestic investors kept buying even as foreign money retreated.

For readers, the takeaway is that diversification mattered more than chasing the hottest trend this year. Whether the coming year rewards caution or a rebound in equities will depend on how crude, foreign flows and domestic earnings play out. For the full analysis, see the original Times Dhandho report.

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