# Gold and Silver ETFs Face Consecutive Monthly Losses in October 2026 Precious metal ETFs record negative returns as investors weigh long-term strategies during Diwali. - **Source:** [mint - money](https://www.livemint.com/rss/money) - **Published:** 2026-11-03 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/44dba62c-5a37-4117-8169-7452c38a5377 ## Consecutive Monthly Declines Gold and silver ETFs recorded their second consecutive month of negative returns in October 2026. Gold ETFs averaged a decline of 5.22%, while silver ETFs faced a sharper drop of 17.16%. This follows a period of positive performance in August, marking a significant shift in market sentiment for precious metals. ## Drivers of Market Correction Market analysts attribute the recent downturn to tightening US monetary policy rather than a collapse in physical demand. Higher interest rates increase the opportunity cost of holding non-yielding assets like gold and silver. Consequently, investors are recalibrating their expectations as markets price in a more restrictive policy environment moving forward. ## Portfolio Allocation Strategy Financial experts recommend maintaining gold and silver within a 10-15% range of total portfolio value. Investors should assess their existing holdings, including physical jewelry, before allocating new capital. If current precious metal exposure already meets this threshold, experts advise against adding further funds, regardless of the recent price corrections. ## Long-Term Investment Perspective Despite short-term volatility, gold remains a long-term hedge that should be evaluated over a full market cycle. Analysts suggest a five-year horizon for gold investments, noting that judging performance over a few months is misleading. Both metals have delivered strong positive returns over three- and five-year periods historically. ## Staggered Buying Approach Fund managers suggest avoiding lump-sum investments at current levels due to potential near-term pressure. Instead, investors should consider staggered buying on price declines to average out costs. This systematic approach mirrors a yearly SIP, allowing investors to acquire a higher quantity of metal during periods of market weakness. ## Gold Versus Silver Dynamics The gold-silver ratio currently stands at 79, indicating gold is relatively more expensive than silver. While gold is recommended as a core precious-metal holding, silver trades more like an industrial commodity, leading to higher volatility. Experts advise treating silver as a small satellite position rather than a primary portfolio component. ## Performance of Top ETFs While no silver ETF has a five-year track record, the ABSL Silver ETF leads three-year returns at 34.69%. In the gold category, UTI Gold ETF and LIC MF Gold ETF remain top performers across both three- and five-year periods. These funds provide stable options for investors seeking long-term exposure to gold. ## Strategic Outlook for Diwali Current price levels offer a potentially better entry point than those seen in the first half of 2026. Investors should prioritize long-term asset allocation over short-term market noise. By maintaining a disciplined, staggered investment strategy, individuals can effectively navigate the current volatility while preparing for potential future market recoveries. ## Sources covering this story - https://www.livemint.com/money/personal-finance/diwali-2026-all-gold-silver-etfs-log-second-month-of-negative-returns-in-october-is-it-time-to-invest-experts-advise-11793698701977.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._