As gold and silver prices slide sharply from recent peaks, veteran investor Porinju Veliyath, also known as the czar of small-cap stocks, said he had no regrets about staying away from precious metals, calling them sentiment-driven assets with no underlying fundamentals.
“Investors need to be cautious on vague and speculative assets like gold, silver, bitcoin etc which have no fundamental values but are driven by sentiment and market frenzy,” Veliyath said, adding, “Discl: never regretted for staying away.”
The small-cap investor shared his view in a post on X, cautioning investors against chasing what he described as vague and speculative assets that move primarily on market frenzy rather than intrinsic strength.
His comments came at a time when precious metals have seen heavy selling pressure after a brief rebound earlier in the week was wiped out by a global selloff in technology stocks and a stronger US dollar. The sharp correction has reignited debate over whether gold and silver are dependable safe havens or largely momentum-driven trades during periods of heightened volatility.
Precious metals slide sharply amid global risk-off mood
Silver has lost nearly 50% from its peak of around ₹4.2 lakh per kg, while gold has fallen almost 23% from its recent high. The weakness intensified as deteriorating risk sentiment across global markets pushed investors toward the US dollar, pressuring non-yielding assets.
On Friday, MCX silver prices dropped as much as 6% intraday, touching a low of ₹2,29,187 per kg, while MCX gold slipped about 2% to ₹₹1,49,396 per 10 grams. The selloff was not limited to domestic markets. On COMEX, silver prices tumbled over 9% to $63.900, while gold futures were down roughly 3% at around $4,670.
Moreover, Bitcoin, the world’s largest cryptocurrency, plunged below $65,000, slipping to its lowest level in more than a year amid intense selling pressure and extreme risk aversion. The digital token, which had surged to a record high of $126,000 in October 2025, has been in a sharp and sustained decline since then, reflecting a broad shift in investor sentiment away from high-risk assets.
There are a combination of macro and geopolitical factors weighing on bullion. The US dollar hovered near a two-week high and was headed for its strongest weekly performance since November, making dollar-denominated commodities less attractive. The greenback found support as investors reassessed expectations after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair, a move markets interpreted as signaling a more hawkish policy stance with slower US rate cuts and a smaller Fed balance sheet.
At the same time, bullion’s safe-haven appeal weakened as geopolitical tensions showed signs of easing. Iran and the US agreed to hold talks in Oman, while a phone call between US President Donald Trump and Chinese President Xi Jinping helped calm fears of escalating trade and security tensions. With diplomatic signals turning constructive, demand for traditional safe-haven assets softened further.
Porinju Veliyath, Founder & CEO of Equity Intelligence India is widely regarded for his value-focused approach and ability to spot multibagger stocks, has long argued that wealth creation lies in fundamentally strong businesses rather than assets driven primarily by sentiment. The recent correction in gold and silver appears to have reinforced his long-held stance.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
