Precious metals like gold and silver are difficult to value because they do not have earnings, book value, or dividend yield. At best, we can look at them through ratios such as Nifty-to-Gold or Nifty-to-Silver, which are imperfect measures. On those ratios today, precious metals do not appear attractive outside of investing through asset allocation or multi-asset strategies. Hence, investors need to be careful while making standalone investments in precious metals.
