Gold and Silver Give Strong Returns as Stock Market Remains Weak in 2026
Gold and silver have given a good return in the last one year. Gold funds have shown an increase of more than 80 percent return, whereas silver ETFs have shown nearly 200 percent return.Even though the stock market crashed in January 2026, precious metals continued their rally, proving to be safe-haven assets for investors.
In a time when investors were facing uncertainty in equity markets, gold and silver emerged as strong options for wealth protection and growth. Many investors shifted their focus toward commodities to avoid risk.
Impact of Stock Market Crash on Investors
Though the stock market crashed in the month of January 2026, it has a big impact on small and mid cap investors. Mid cap investors are majorly affected by this downfall.
On January 23, 2026, the Sensex had declined by 770 points. The Indian market still shows a persistent bearish look. Due to this downfall, many small and mid cap investors faced losses and uncertainty in the market.
In spite of all this downfall, some large cap investors have made big profits. This shows that different categories of investors are affected differently during market corrections.
Gold Price Continues Rising
Gold prices are continuously rising, and this rally is expected to continue for some time. According to sources, gold price may rise up to ₹1,75,000 per 10 gram.The main reason behind this rise is the increasing dependency on gold rather than the US dollar.Many countries are buying gold, which is why gold prices are touching new heights.Gold continues to be a preferred investment during times of global and domestic uncertainty.
Due to global uncertainty and currency pressure, gold and silver remains one of the most preferred investment options. Gold funds have shown an increase of more than 80 percent of return, which reflects growing investor confidence in gold.
Silver Prices Hit Record Highs
Silver has also shown a significant price surge in the past year:
Current silver price: ₹3,40,100
Expected price in 2026: nearly ₹4 lakh
The price of silver depends on demand and supply. High demand in solar panels and other industries has contributed to rising silver prices.The industrial use of silver is one of the key reasons behind its rising demand. Due to this increasing demand, silver prices are expected to remain strong in the coming time.
Market Outlook and Investor Advice
Even though the stock market showed a short-term fall, precious metals have outperformed equities. Small and mid-cap investors need to be cautious until Nifty crosses 25,600. FII selling pressure may continue if Nifty reaches 24,900.
So small cap and mid cap investors must be careful while investing. The Indian market still shows a persistent bearish look, and global cues continue to impact market sentiment. Downfall gives opportunity to invest in stocks as the market has trends to fall and rise. It is a short term fall and the market again rises in the long term.
In spite of short-term losses, investors who remain patient may benefit in the long run. In spite of all this downfall, some large cap investors have made big profits, which proves that opportunities exist even during corrections.
Gold and silver have proven to be strong wealth protectors while the stock market remains volatile. Investors should maintain a positive outlook, stay patient, and carefully track market movements. Precious metals continue to shine, offering stability and high returns even when equities face uncertainty. Global and national news have a strong impact on both the stock market and commodity prices, so investors need to remain informed and cautious while planning investments.
