Should you book profit in gold silver?:Surprised by a sudden rally in precious metals, experts advise investors to become cautious

Gold and silver prices trade at all-time high levels. According to the India Bullion and Jewelers Association (IBJA), gold has reached Rs 1,54,310 per 10 grams. Meanwhile, 1 kg of silver has shot up to Rs 3,11,705. This year, in just 23 days, gold has become more expensive by Rs 21,115 per 10 gm and silver by Rs 81,285 per kg. So, should you book profit in gold and silver? Gold and silver prices have been on a wild ride lately, reaching levels that surprised even the experts. Now, some financial advisors are suggesting it might be a good time to take some profits off the table. Unexpected Price Surge Aditya Modak, CFO COO at P N Gadgil Sons, a well-known jewelry company, said that the recent increase in gold and silver prices has been “unprecedented.” He admitted that he didn’t expect to see prices this high so soon. Time to Take Profits? Modak believes that because most growth targets have already been met, it’s a good time to “book profits.” This means selling some of your gold and silver to lock in the gains you’ve made. Silver’s Volatility He especially recommends selling some silver, as it’s “far more volatile than gold.” Driven by Global Unrest Modak explained that the price hike isn’t because of a real increase in demand for gold and silver. Instead, it’s mainly due to “Cold War” style tensions and global unrest around the world. People often buy gold and silver as a safe haven during uncertain times.

Correction Expected Because the price increases are driven by these external factors, Modak believes that the current fluctuations are “quite sharp.” He expects a “correction,” meaning that prices will likely fall at some point. While he doesn’t know exactly when this will happen, he thinks it’s wise to secure some returns now. He also added that further positive moves remain a distinct possibility. Gold Hits Record Highs Ajay Kedia, founder of Kedia Advisory, also noted that gold prices have climbed to a fresh record near $5,000 an ounce. He agreed that this is due to strong demand for safe haven assets. Overbought Zone However, Kedia also warned that prices are in a “highly overbought zone.” This means that prices have risen too quickly and are likely to fall back down. Expert Advice Both experts suggest that investors should be cautious and consider taking some profits off the table. While gold and silver prices could continue to rise, they also believe that a correction is likely, and it’s better to be safe than sorry.