Adding Silver to my portfolio: Should I treat it like Gold or is it much riskier?

Published 2 October 2026

Janhavi from Mumbai

I have about Rs 15L in mutual funds and Rs 3L in Sovereign Gold Bonds. I am thinking of adding Silver ETFs to my portfolio.

I read somewhere that silver is like the "small cap" of commodities.

How much should I allocate and what kind of volatility should I expect over a 5yr horizon?

Sachin Kabra ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

Silver should absolutely be treated as a highly volatile, mid-to-small cap asset rather than a stable safe haven like gold. Gold acts as the large cap of your commodity portfolio, serving as a stabilizer driven by central bank buying in a global economy.

Silver, on the other hand, is a less understood element with massive and expanding industrial applications across new-age industries. Because it is primarily mined as a byproduct, its supply is inherently limited, creating a structural supply-demand mismatch that propels prices.

However, you must be prepared for extreme volatility, as silver can easily correct by 10% to 15% in a single month. A balanced approach is to hold both gold and silver, giving you a large and midcap risk-reward profile within the commodities space.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.

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