Sankaran Naren, Executive Director and Chief Investment Officer of ICICI Prudential Mutual Fund, has cautioned investors against treating silver as a long-term asset class, saying the white metal behaves more like a small-cap stock and carries significantly higher risk.
Speaking at the MFD Galaxy 16th Knowledge Summit 2026, Naren said that while silver can deliver sharp gains in the short term, it should not be considered a stable investment category like gold. A short video clip from his speech has resurfaced on social media platform X, drawing attention to his views on the precious metal.
“Silver is a small-cap stock. It will behave like a small-cap stock. So if any of you are investing in silver, it should be only for thrill. It cannot be an asset class,” Naren said in the clip.
According to him, many investors mistakenly classify silver alongside gold as a core portfolio asset. However, he argued that the risk profile of silver is much closer to equities, particularly small-cap stocks, which are known for their high volatility and uncertain long-term outcomes.
“When you are investing in a stock, the risks are very high. The near term can be very good, but long term in a stock is always very risky because you don’t know what will happen,” he said, urging investors to exercise caution when allocating money to the metal.
Gold as an Asset Class
In contrast, Naren said gold can still qualify as an asset class under certain macroeconomic conditions. However, he stressed that even gold should not necessarily be a default investment unless investors have a clear view on the global currency environment.
“All you need to do is that you have to be very negative on the dollar. If you are very negative on the dollar, you can invest in gold,” he said, outlining the framework used by ICICI Prudential Mutual Fund in evaluating gold investments.
Outside such macro views, Naren suggested that gold exposure may be more appropriate through diversified vehicles such as multi-asset funds rather than direct allocations.
He reiterated that silver’s appeal largely lies in its potential for sharp price swings, which can attract investors looking for excitement rather than stability.
“Silver can give you daily thrill. Gold will not give you that much thrill. But it is an asset class to consider if you are anti-dollar. Otherwise, it is worth it as only part of multi-asset funds,” he said, adding that investors should clearly understand the risks involved before treating silver as part of their long-term portfolios.
Naren added that while silver may offer trading opportunities, it should not be mistaken for a core asset class in a disciplined investment framework.
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.
