The investing world feels shaken right now. Markets are falling, gold has lost its shine, and silver is slipping fast, with the same speed it was gaining a few months back.
At a time when investors usually expect at least one asset class to offer safety, the current market phase is telling a very different story. A rare moment when both risky and safe-haven assets are moving down together.
Since the Iran war began, the Sensex has fallen over 8,500 points, or about 10.6%, while the Nifty has dropped nearly 2,700 points, also around 10.6%.
At the same time, gold and silver have also declinedleaving investors with limited places to hide.
This rare situation, where both risky and safe-haven assets are falling together, has left many retail investors confused about what to do next.
WHY ARE ALL ASSETS FALLING TOGETHER?
Market experts say this is not a typical cycle.
Swapnil Aggarwal, Director, VSRK Capital, explained that the current weakness in gold and silver is not surprising when seen in context.
“Markets are falling, but gold and silver are also under pressure because there was no room left for them to go up,” he said.
He pointed out that the rally in precious metals had already played out earlier.
“The rally that was supposed to come during this situation had already happened earlier, even before the war,” Aggarwal said.
He added that both gold and silver had become overbought.
“Many retail investors had shifted their money from equity mutual funds and stocks into these assets,” he said.
Now, the trend appears to have reversed.
“Due to panic, people are selling wherever they are finding liquidity,” Aggarwal added.
This explains why even traditional safe havens are not providing protection right now.
WHAT MAKES THIS PHASE DIFFERENT?
Typically, during geopolitical tensions, investors move money from equities to gold.
But this time, both are falling. The key reason is timing.
The move in gold and silver came before the crisis fully played out, leaving little upside during the actual event.
At the same time, broader market stress and panic selling have led investors to exit positions across asset classes.
The nearly identical fall in Sensex and Nifty also shows that the selling is broad-based, not limited to specific sectors.
WHAT SHOULD INVESTORS DO NOW?
Despite the uncertainty, experts say this phase should not be seen only as a risk, but also as an opportunity.
“In this kind of market, it is always an opportunity,” Aggarwal said.
He advised that investors with cash can start deploying it gradually.
“If someone has liquidity, they can start buying on dips,” he said.
For those who do not have extra funds, the advice is simple.
“If they don’t have funds, they should stay invested and wait for the market to turn around,” he added.
IS DOING NOTHING A GOOD STRATEGY?
In volatile markets, not acting can also be a valid decision.
“Yes, doing nothing is also a strategy,” Aggarwal said.
He explained that many investors enter markets without fully understanding risks.
“Sometimes investors invest without fully understanding the lows, so in such cases they can simply sit, wait, and watch,” he added.
SHOULD YOU CONTINUE SIPs?
For long-term investors, stopping investments may not be the right move.
“Investors should continue their SIPs,” Aggarwal said.
He pointed out that falling markets actually benefit systematic investing.
“This phase is actually very good for SIPs, as it allows investors to accumulate at lower NAV levels,” he said.
He added that those with capacity can even increase their investments.
“If someone has room, they can even consider increasing their SIPs,” he said.
IS THIS THE RIGHT TIME TO BUY STOCKS?
For investors willing to take some risk, this phase may offer opportunities.
“It is a good time for stock picking for those who are ready to take risk,” Aggarwal said.
He noted that many quality companies are now available at lower prices.
“Many large-cap stocks have corrected significantly, and there are good companies available at lower prices,” he said.
WHICH SECTORS LOOK RELATIVELY SAFE?
Even in a falling market, some sectors may hold up better.
“At the current level, green energy and defence look relatively safer,” Aggarwal said.
He linked this to ongoing geopolitical developments.
“Due to ongoing situations like the Strait of Hormuz concerns, the government is likely to focus more on these sectors,” he added.
SHOULD YOU STILL INVEST IN GOLD?
Gold’s recent fall has raised questions about its role in portfolios.
Aggarwal believes the major move in gold and silver may already be behind us.
“Gold and silver have already given their move,” he said. From a long-term perspective, he prefers equities.
“For the long term, equity is a better option,” he added. He advised investors with a longer horizon to stay focused.
“Investors with a 5–10 year horizon should focus more on equities rather than increasing allocation to gold,” he said.
At a time when nothing seems to be working, the biggest risk is reacting emotionally.
“Do not panic. Just wait and observe,” Aggarwal said. He called this phase a learning experience, especially for new investors.
“Markets have gone through such situations before as well,” he said.
“It helps investors understand how markets react to different conditions and builds experience over time.”
When markets, gold and silver fall together, it may feel like there is no safe place to invest. But experts say this is not a time to exit, but a time to stay disciplined.
For investors, the focus should remain on patience, gradual investing, and long-term goals, rather than short-term fear.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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