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Silver rally likely to end soon, investors should rotate profit to Indian stocks: Report
['Telangana Today']
Telangana Today
Silver Rally Likely To End Soon Investors Should Rotate Profit To Indian Stocks ReportSilver rally likely to end soon, investors should rotate profit to Indian stocks: ReportWhiteOak Capital advises investors to book profits on silver, now overvalued relative to historical levels, and reduce precious metals allocation.
The report from WhiteOak Capital Mutual Fund said that investors should trim precious metals allocation back to a safe haven allocation level and stop chasing further upside.
“Book profits on silver, as its current valuation is the most over-extended relative to historical periods.
The current Gold-to-Silver ratio has collapsed to about 46:1 versus a 10 year average near 80:1, the report said.
In previous cycles, a ratio this low has preceded a mean reversion where silver prices corrected significantly faster relative to gold,” the fund house further said.