Commodity is the New Currency: Expert Insights on Investing in Gold and Silver

In a world of shifting economic alliances and monetary policy changes, a new investment mantra is gaining ground. Anindya Banerjee of Kotak Securities recently highlighted that “commodity is the new currency,” pointing to gold and silver as critical assets for modern portfolios. This perspective comes as prices for these precious metals climb, driven by deep structural changes in the global economy.

The Driving Forces Behind Rising Prices

According to experts, two primary forces are pushing gold and silver higher. The first is global monetary change. Central banks worldwide, particularly in emerging markets, are diversifying their reserves away from traditional currencies like the US dollar. They are buying gold at a record pace, creating sustained demand. The second force is ongoing trade tension between major economies. These disputes create uncertainty, prompting investors to seek safe-haven assets that hold intrinsic value.

This environment makes precious metals more than just a hedge. They are becoming a fundamental store of wealth. Unlike fiat currency, which can be printed by governments, the supply of gold and silver is limited. This scarcity underpins their value as a form of “real money” in turbulent times.

Price Targets and Investment Strategies for 2026

Analysts project significant potential for both metals. For gold, the forecast suggests a possible rise to between ₹1,60,000 and ₹1,65,000 per 10 grams. Silver, which often exhibits more volatile price movements, could see targets between ₹3,65,000 and ₹3,70,000 per kilogram. These projections indicate a strong belief that the current bullish trend has room to run.

For investors concerned they have missed the rally, the advice is clear: it is not too late. The recommended approach is a balanced one. Experts suggest using a mix of lump-sum investments and Systematic Investment Plans (SIPs). A lump-sum allocation can provide immediate exposure to the asset class. Meanwhile, a SIP in gold or silver ETFs or funds allows investors to average their purchase cost over time, reducing the risk of investing a large amount at a price peak.

Broader Commodity Market Context

The focus on precious metals exists within a wider commodity story. Geopolitical risks, especially in oil-producing regions, continue to threaten supply chains. Analysts note that crude oil prices may experience temporary spikes due to these tensions. While oil may see volatile swings, the outlook for gold and silver is considered more structurally sound, driven by long-term monetary trends rather than short-term supply disruptions.

This distinction is important for investors. It reinforces the idea that gold and silver are playing a different role. They are not merely speculative trades on geopolitical news but are being re-evaluated as core monetary assets. As global trade patterns shift and new financial alliances form, holding tangible commodities provides a layer of security against currency devaluation and systemic risk.

In summary, the investment landscape is evolving. The idea that “commodity is the new currency” reflects a pragmatic response to a changing world. For investors building a portfolio for 2026 and beyond, incorporating gold and silver through a disciplined strategy may be an essential step in safeguarding and growing their wealth.