Gold Silver ETFs Today: Buy the Dip or Wait?
Gold and silver exchange-traded funds (ETFs) have dropped significantly on January 22nd. Following an exceptional rise that lifted precious metals to all-time highs at the beginning of the year. The downturn has sparked discussions among investors. It is regarding whether this should be interpreted as a buying opportunity or indicative of further declines to come.
The Downdraft on Precious Metal ETFs
Numerous precious metal ETFs saw substantial intraday declines ranging from over 20% for Tata Silver ETF and close to 12% for Birla Sun Life Gold ETF. Both ETF’s decline has closely mirrored the declines in spot gold and silver prices when global risk appetite decreased.
Market experts believe that the actions reflect a change in market sentiment. Rather than a break in fundamentals. For example, one analyst stated that the correction has primarily been driven by profit-taking and portfolio rebalancing as a result of sustained price gains. It is one of the most prevalent themes currently in the latest news on Business globally.
What Happened to Cause the Drop?
The decline was precipitated by a reduction in geopolitical tensions. U.S. President Donald Trump recently announced an agreement with NATO regarding Greenland. He subsequently backed off previous plans to implement tariffs on goods imported into the U.S. from Greenland.
According to Justin Khoo, Senior Market Analyst for VT Market, the dramatic decline in prices of some ETFs. With some choices dropping nearly 21%, was a result of changing investor sentiment, and not indicative of the collapse of precious metals. Although he argues that the price of precious metals remains relatively high when compared to prior historical highs. He also claims that the recent drop in prices should be viewed as a rebalancing of risk taken by investors when stock markets begin to climb.
Similarly, Siddharth Maurya, Founder and Managing Director of Vibhavangal Anukulakara, believes that the drop in ETF values were a result of profit-taking. They were influenced by the reversal of risk-off positions on metals reaching historic highs. He also believes that fluctuations in ETF values will be continual and frequent. While the market evolves relative to global economic developments.
Are investors smart capitalizing on a dip?
There remains a divide in the market on this question. According to Tanvi Kanchan, the Associate Director at Anand Rathi Share and Stock Brokers, some investors view current corrections as an opportunity to purchase. While others view current elevated pricing following price increases through 2025 as something that can continue to be maintained.
Kanchan stated further that the long-term fundamentals are continuing to be strong due to demand from solar, electric vehicle, AI infrastructure. However, she did recommend not to make lump-sum investments today. To spread out purchases over several weeks or months which will help minimize any timing risk.
For Conservative Allocations – advice to establish 5–10% of your total portfolio to either gold or silver ETFs. By method of systematic purchase, this provides less risk of volatility and retains exposure to asset classes that tend to perform well during geopolitical instability and shifting of monetary policy.
Harshal Dasani, Business Head at INVasset PMS stated that silver ETFs had a greater decline than MCX Silver as Speculation Premiums related to Expectations of the Budget unwinding from them.
With retail investors eager to secure profits, ETF prices responded more quickly.
With structural demand factors remaining stable but short-term sentiment still weak, analysts recommend careful accumulation instead of reckless speculation. For long-term investors, the current correction may offer strategic entry points—but patience will be key amid ongoing volatility.
