The stock market was trading in a range for the last one and a half years, but after the deal with America, a sudden rise was seen, while the prices of gold and silver are also continuously increasing. After falling for almost four days, gold and silver prices have started rising again. So, what options do investors have now? Gold and silver are down about 25 percent from their all-time highs.
India has also finalized a trade deal with America, which was awaited for almost nine months. After the announcement of this deal, Tuesday was a very auspicious day for the stock market. Sensex and Nifty recorded their biggest one-day gains in almost eight months. Sensex closed 2072 points higher at 83,739, while Nifty closed 639 points higher at 25,727.
Two options… where to invest the money?
Actually, the stock market has been trading in a range for the last one and a half years. In July 2024, Nifty was at around 25,000 points, and the index is still hovering around the same level. This is because such news was continuously coming which was putting pressure on the market. Especially in the past year, global sentiment has dominated the market. First, the Russia-Ukraine war sent the market into crisis, then US President Donald Trump imposed 25 per cent tariffs on India in April 2025, followed by an additional 25 per cent tariff on buying Russian oil. This caused the market to fall and not recover. But now that the deal has been made between the two countries, the market sentiment has also improved.
Meanwhile, gold and silver have been a better investment option for investors. In the last few years, a tremendous rise has been seen in gold and silver. The price of gold has doubled in the last one year, while the price of silver has almost tripled in the same period. There is a special craze for silver among investors. After a few days of decline, gold and silver prices are again showing an upward trend. Meanwhile, many people were withdrawing money from the stock market and investing in gold and silver. This was because while the stock market was underperforming, gold and silver were making investors rich. But now the market is also gaining momentum, India is progressing rapidly on the economic front, and the country’s GDP growth remains above 7 percent.
Many good news for stock market
Now, after the deal with America, further growth in the market is expected. This is because there were many positive developments over the past few months, but the market remained range-bound. For example, the RBI reduced interest rates several times, GST reforms were implemented, and an FTA was signed with the EU. Despite all this, all eyes were on the deal with the US, which has now been finalized, and is being considered as a trigger point for the market.
Fear of loss due to hasty decisions
Right now, the big question is what should investors do? Is the stock market a better investment option right now, or gold and silver? According to experts, gold and silver have already increased significantly. There may be a slight increase from the current prices. Since investors’ inclination towards gold and silver has increased, if you want to invest in gold and silver for 5-10 years, then invest through SIP (Systematic Investment Plan) format for the next 6 months. The rule is that if you want to invest Rs 1 lakh in gold and silver, then invest it in 4-6 installments in the next 6 months. That is, buy gold and silver worth Rs 2,000 every month. Avoid investing the entire Rs 1 lakh at once. This may not bring much profit, but it will also avoid big losses.
The same formula applies to the stock market also. Avoid investing large amounts of money in the market at once; Invest gradually during each downturn. This is because global challenges have not ended, and tensions remain between the US and Iran. If you want to make new investments in the market, invest in fundamentally strong companies and avoid investing too much in small-cap stocks. Furthermore, every investor is advised to diversify his portfolio. They should invest only 10-20% of their portfolio in gold and silver to reduce the risk, because the prices of gold and silver can go up and down by 10% in a single day.
