At present the price of silver is around $67, which is about 45% below its all-time high of $121. At the same time, gold has also fallen to around $4,488, which is about 20% less than its peak of $5,602. The recent fall has surprised many investors. Especially those people who had come to invest at high prices, now their portfolio has gone into loss. But the question is why did this happen? In fact, gold had risen by about 65% in 2025 and was giving more than 20% returns every year after 2023.
The biggest mistake is investing without a plan.
If you are incurring losses now, the biggest reason could be that you invested without a plan. Especially retail investors often make purchases due to emotions or fear of missing out (FOMO). Its effect was clearly visible in India also. There was an investment of Rs 11,646 crore in Gold ETFs in December 2025, which was three times more than Rs 3,741 crore in November. In January 2026, this was the first time that Indian investors invested more money in gold ETFs than in equity funds.
Why are gold ETFs better?
It is a good thing that people are investing in gold ETFs. It is a better option than physical gold (like jewelery or coins), because there are no making charges, wastage and risk of theft. Also, ETF prices remain closer to the real price of gold.
Right way asset allocation
To get good returns in the long run, the most important thing is asset allocation, i.e. dividing your investments among different places. Experts recommend that 1015% of the portfolio should be in gold. When gold prices fall, it is a buying opportunity. And when the prices increase a lot, the balance should be maintained by withdrawing some profit.
Is RBI also doing the same?
Statistics show that RBI purchased gold continuously from 2022, but significantly reduced the purchase in 2025. The reason for this could be that he has achieved his target allocation. By 2025, the share of gold in India’s foreign exchange reserves had reached about 16%.
What will be the trend going forward?
Gold usually shines when there is increasing uncertainty in the world such as war, economic weakness or currency decline. At present, the direction of gold will largely depend on oil prices, dollar strength and inflation. If the dollar strengthens and interest rates rise, there may be pressure on gold.
Lessons for investors
If you find it difficult to track all these factors, then there is no need to panic. Just make a right plan and make gradual, regular investments like SIP. If you invest with discipline, the decline or fluctuations of the market will not bother you much and you will be able to reach your goal easily.