Kotak AMC's Nilesh Shah says gold, silver should form only small part of investment portfolio

Gold and silver may be glittering again, but investors should exercise caution, according to Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company.

Speaking to CNBC-TV18, Shah emphasised that precious metals should form only a small portion of an investment portfolio.

“Do invest in gold and silver, but be aware that these are assets without intrinsic value and hence should form only a small part of your portfolio — whether that’s 5%, 10%, or 15% depends on your risk appetite and time horizon,” he said.

Shah noted that unlike equities or bonds, gold and silver do not generate cash flows, dividends, or bonuses, making fundamental valuation difficult. “Their value lies purely in centuries of collective belief and trust,” he added.

On the current gold rally, Shah attrib