Middle East crisis: Should you invest in gold ETFs or silver ETFs? Here's what experts suggest
Times of India
by TOI BUSINESS DESKMarch 3, 2026
AI-Generated Deep Dive Summary
The Middle East crisis, marked by heightened geopolitical tensions between the US, Israel, and Iran, has reignited interest in safe-haven assets like gold and silver ETFs. Investors are grappling with whether to allocate their portfolios to gold ETFs, silver ETFs, or a combination of both. Experts suggest that while gold is the primary safe haven during such crises, silver can serve as a complementary asset due to its industrial applications.
According to market participants, gold ETFs are generally more stable in times of uncertainty, as they act as a pure safe-haven asset. Silver ETFs, on the other hand, are influenced by both industrial demand and risk-off sentiment, making them more volatile. Siddharth Srivastava of Mirae Asset Investment Managers emphasizes that while silver can still play a role, investors should prioritize gold for its reliability in uncertain environments. Similarly, Shivam Pathak of Asset Elixir advises a higher allocation to gold ETFs due to their quicker response to geopolitical stress.
The recent surge in precious metal prices reflects this shift: gold futures surged over 3.5%, while silver futures rose nearly 3.5%. These movements highlight the potential for gains but also underscore the volatility tied to global economic factors, including oil prices and industrial growth. The Strait of Hormuz, a critical oil transit route, has become a focal point as tensions escalate, further driving demand for safe assets.
Investors are advised to allocate 10–15% of their portfolios to precious metals ETFs, with a tilt toward gold for stability. Gold’s inverse relationship with the US dollar and its role as an inflation hedge makes it a long-term defensive asset. Silver’s performance is more tied to global economic growth, making it less predictable during crises.
The ongoing Middle East conflict underscores the importance of strategic portfolio diversification. With geopolitical risks escalating and oil prices spiking, the demand for safe-haven assets is likely to persist. Investors must weigh the stability of gold against the potential upside of silver, while considering their tolerance for volatility in a rapidly changing global landscape.
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Originally published on Times of India on 3/3/2026